Proposed tax changed as Michigan House preps vote on major medical marijuana package

LANSING, MI — Medical marijuana dispensaries would be taxed at 3 percent, and customer patients would also pay the state's six-percent sales tax, under legislation set for a vote Wednesday in the Michigan House.

The proposed dispensary tax was lowered from 8 percent in a substitute bill adopted by the House on Tuesday, and the medical tax would be eliminated if recreational marijuana use and taxable sales are later authorized in the state.

The three-bill package would make major changes to the state's medical marijuana program, approved by voters in 2008. While it would not end the patient-caregiver system that allows for home growing, it would create a separate regulatory framework for medical marijuana businesses.

The legislation would regulate dispensaries, create licenses for growers and distributors, establish a "seed-to-sale" tracking system for medical marijuana and clarify that patients can use non-smokable forms of the drug.

Marijuana businesses could only operate in municipalities that allow them. Local governments could also limit the number and type of facilities that can operate in their jurisdiction.  read more

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