DETROIT (WXYZ) — Governor Gretchen Whitmer introduced a $3 billion road repair funding plan that would include a tax increase on marijuana that would generate about $470 million.
Hardly anyone would disagree that many of Michigan’s roadways need work, but those in the cannabis industry say implementing a wholesale tax on marijuana would be a major buzzkill.
“The way that you get rid of new industry, especially a new equitable industry where minorities can benefit from, the way that you slowdown that progress that momentum is by overtaxing them,” said Al Williams.
Call it a blunt message from a politico-cannabis entrepreneur. Williams, the co-owner and President of Da Cut marijuana dispensary in Detroit is fuming over the governor’s proposed 32 percent tax hike to fix Michigan roads. Michigan currently has a 10 percent excise tax on marijuana.
“I’m not scared for just myself but everyone in this industry. We will not be able to survive a 32 percent tax increase,” said Williams.
Williams says the larger operations that might survive would have to pass on costs to consumers.
“In some cases, your gummies are going to go up 90 percent if this goes through," he says. "In a lot of cases this is going to add $2 per gram if this goes through.”
“I’m for that,” said Valerie Robinson, a Southfield resident. “I mean, if they put that on gas, they can put that on marijuana.”
“For Michiganders, who got they business off the ground here in Michigan and stayed in Michigan, didn’t run off to other states, I believe shouldn’t pay,” said Marquez Yeldell, a Detroiter. “But the people who came here who ain’t from Michigan, they should pay for our roads."
Senate Majority Leader Winnie Brinks, a Democrat, said this about the proposal:
Gov. Whitmer’s plan is an honest evaluation of the real costs of rebuilding and repairing our roads. The governor, Speaker, and I have all expressed a desire to find a long-term, sustainable solution and I believe that we can take this complicated issue that has plagued our state for decades and turn it into a major bipartisan win for all Michiganders.”
“Our whole drive in the Michigan House is to make Michigan more affordable,” said GOP State Rep. Mike Harris. “I don’t think adding a tax on marijuana does that.”
Harris, a former cop, says the tax hike would help drive the marijuana market back underground and that there are better ways to fund road repairs.
“The House Republicans have proposed a way to do this without raising any taxes or fees, and it’s by cutting back on wasteful spending that we already have, which, of course, is a pretty novel idea in government.”
A spokeswoman for the governor says nothing is set in stone just yet and Whitmer intends to negotiate the road funding plan with the legislature.
