MichiganHB 49512025-2026 Regular SessionHouse

Marihuana: taxation; comprehensive road funding act; create. Creates new act. TIE BAR WITH: HB 4183'25, HB 4961'25, HB 4968'25Last Action: assigned PA 23'25 with immediate effect

Sponsored By: Samantha Steckloff (Democratic)

Signed by Governor

Marihuana: taxationHighways: construction and repairTransportation: otherTaxation: other

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Marijuana tax revenue supports Michigan roads

The law creates a comprehensive road funding fund and splits marijuana tax revenue by state fiscal year. In fiscal year 2025–2026, that fund gets $3 million; the neighborhood road fund gets the rest. Beginning in fiscal year 2026–2027, the comprehensive fund gets $500,000 annually, with the rest going to the neighborhood fund. Starting in fiscal year 2027–2028, the annual allocation rises with inflation but does not fall when prices decline. The adjustment compares average monthly Consumer Price Index values for the previous two fiscal years. Comprehensive fund spending requires legislative approval and can only cover this law's setup and administration. Unspent money stays in the fund rather than moving to the general fund at year-end.

Marijuana businesses pay new 24% wholesale tax

Beginning January 1, 2026, Michigan charges businesses a 24% marijuana wholesale tax, in addition to other taxes. It covers first sales or transfers from marijuana establishments to retail licensees and transfers from provisioning centers to retail licensees. It also covers marijuana that retail licensees grow or process for retail sale. Unaffiliated businesses use actual prices, including invoiced taxes, fees, and charges, without reductions for rebates or discounts. Affiliated transactions and retailer-grown or processed marijuana use average wholesale prices published quarterly by Michigan Treasury. Taxpayers must file returns on Treasury's schedule and pay with each return. When a due date falls on a weekend or legal holiday, payment is due the next business day. Consumers may pay higher prices if businesses pass along the tax. The law's effectiveness is tied to enactment of House Bills 4183, 4961, and 4968 of the 103rd Legislature.

Sponsors & Cosponsors

Sponsor

  • Samantha Steckloff

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 97 • No: 38

Senate vote • 10/3/2025

PASSED; GIVEN IMMEDIATE EFFECT

Yes: 19 • No: 17 • Other: 1

House vote • 9/25/2025

passed; given immediate effect

Yes: 78 • No: 21 • Other: 11

Actions Timeline

  1. assigned PA 23'25 with immediate effect

    10/8/2025House
  2. filed with Secretary of State 10/07/2025 01:32 PM

    10/8/2025House
  3. approved by the Governor 10/07/2025 12:16 PM

    10/8/2025House
  4. presented to the Governor 10/06/2025 03:04 PM

    10/7/2025House
  5. bill ordered enrolled

    10/3/2025House
  6. returned from Senate without amendment with immediate effect

    10/3/2025House
  7. RETURNED TO HOUSE

    10/3/2025Senate
  8. PASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 264 YEAS 19 NAYS 17 EXCUSED 1 NOT VOTING 0

    10/3/2025Senate
  9. PLACED ON IMMEDIATE PASSAGE

    10/3/2025Senate
  10. RULES SUSPENDED

    10/3/2025Senate
  11. PLACED ON ORDER OF THIRD READING

    10/2/2025Senate
  12. REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)

    10/2/2025Senate
  13. REFERRED TO COMMITTEE OF THE WHOLE

    9/29/2025Senate
  14. RULES SUSPENDED

    9/29/2025Senate
  15. PASSED BY HOUSE WITH IMMEDIATE EFFECT

    9/29/2025House
  16. transmitted

    9/25/2025House
  17. title amended

    9/25/2025House
  18. passed; given immediate effect Roll Call #234 Yeas 78 Nays 21 Excused 0 Not Voting 11

    9/25/2025House
  19. read a third time

    9/25/2025House
  20. placed on immediate passage

    9/25/2025House
  21. placed on third reading

    9/25/2025House
  22. substitute (H-1) adopted

    9/25/2025House
  23. read a second time

    9/25/2025House
  24. placed on second reading

    9/25/2025House
  25. motion to discharge committee approved

    9/25/2025House

Bill Text

  • Public Act

    10/7/2025

  • As Passed by the Senate

    10/3/2025

  • House Concurred

    10/3/2025

  • As Passed by the House

    9/25/2025

  • Introduced

    9/16/2025

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