Michigan’s New 24% Cannabis Tax: Glacier Cannabis President Speaks with WWMT

Glacier President Featured on WWMT Channel 3: Speaking Up for Michigan Cultivators, Dispensaries, and Consumers

As a licensed cultivation and production facility supplying over 300 dispensaries statewide, we felt it was essential to give the farming and production side of this industry a voice.

Michigan’s cannabis industry is wary of a new marijuana wholesale tax as a judge allows the tax to take effect Jan. 1. (Remington Hernandez/WWMT)

Setting the record straight in Michigan, Glacier President Andrew Sereno sat down with WWMT News Channel 3 to discuss one of the most pressing challenges facing Michigan’s cannabis cultivators and producers: the new 24% wholesale tax taking effect January 1, 2026.

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The Tax That’s Keeping Cultivators Up at Night

Michigan’s new 24% marijuana wholesale tax was enacted as part of this year’s state budget, with funds earmarked for road infrastructure. While infrastructure investment is important, this tax lands squarely on the shoulders of wholesalers, cultivators, producers, and processors like Glacier Cannabis who grow and manufacture the products that stock dispensary shelves across Michigan.

The Michigan Cannabis Industry Association (MiCIA) filed a lawsuit challenging the tax, arguing it violates the 2018 ballot measure voters approved.

Unfortunately, State Court of Claims Judge Sima Patel ruled Monday that the challenge is unlikely to succeed, allowing the tax to move forward. MiCIA plans to appeal.

The Reality for Cultivators and Producers

Let’s be real about the economics of cannabis cultivation in Michigan. Margins in wholesale have tightened significantly over the past few years as the market matured and competition increased. Cultivators have invested heavily in facilities, equipment, genetics, and labor to produce quality flower and products at competitive prices. A 24% tax on wholesale transactions isn’t something that can simply be absorbed.

“With a 24% tax, if we had to assume that, let’s be honest, the margin’s nowhere near that … I think there’s only one option in the end is to raise prices.”

“With a 24% tax, if we had to assume that, let’s be honest, the margin’s nowhere near that,” Glacier told WWMT. “I think there’s only one option in the end is to raise prices.”

This means cultivators face a difficult choice: raise prices to retail partners and risk losing accounts, or try to absorb costs that simply aren’t sustainable. Neither option is good for a farming operation that’s already navigating tight margins, seasonal variability, and the constant pressure to improve quality and efficiency.

Preparing Glacier for the Storm

Our upstream has been transparent with Glacier’s shareholders about what lies ahead. We’ve paused distributions and dividends to build up reserves that will help us weather this transition. It’s not the news any investor wants to hear, but it’s the responsible approach when facing a major cost increase of this magnitude.

“I actually sent a letter out to the Glacier shareholders saying we’re pausing any distributions, any dividends, looking to stack up the bank account to be able to survive the storm”

“I actually sent a letter out to the Glacier shareholders saying we’re pausing any distributions, any dividends, looking to stack up the bank account to be able to survive the storm,” Andrew shared.

We’re also looking at every aspect of our cultivation and production operations to find efficiencies wherever possible. But there’s only so much you can cut when you’re committed to producing premium cannabis.

The Bigger Picture for Michigan’s Cannabis Farmers

Michigan’s cannabis industry has been one of the state’s biggest job creators since recreational use was approved in 2018. A significant portion of those jobs are in cultivation and production: the farmers, trimmers, extractors, and production workers who transform seeds into the products consumers love.

We’ve expressed real concern about what this tax means for those workers and the facilities that employ them. With margins squeezed further, more cultivators may face the difficult decision to scale back operations or close entirely. We’ve already seen dispensary closures across the state, and cultivation facilities could be next.

“Michigan, doing what it did and having the price where it was, out competed the black market … But now, it changes it completely.”

“Michigan, doing what it did and having the price where it was, out competed the black market,” Glacier President Andrew Sereno explained. “But now, it changes it completely.”

Competitive wholesale pricing allowed Michigan cultivators to supply dispensaries with quality products at prices that kept consumers in the legal market. If wholesale costs rise 24%, that pricing advantage disappears and the illicit market becomes attractive again.

Our Commitment to Our Retail Partners

To the dispensaries we supply across Michigan: we’re committed to working through this together. We’ll be as transparent as possible about pricing changes and timing. We know you’re facing your own pressures, and the last thing we want is to make your business harder. But we also need to keep our cultivation and production operations viable so we can continue delivering the quality products your customers expect.

This is a time for the entire supply chain: cultivators, processors, distributors, and retailers, to stand together and advocate for sensible cannabis policy in Michigan.

New Weed Tax Cheat Sheet & Key Details

Since this topic is moving fast, here is a clean, official-summary addendum based on Michigan Treasury guidance.

If you are a retailer, vendor, or just a Michigan consumer watching the headlines, these are the practical points to know:

• • Effective date: January 1, 2026.
  • What it is: A new 24% excise tax on wholesale sales of adult-use marihuana (wholesale price).
  • Applies in addition to: Michigan’s existing 10% adult-use retail excise tax and the 6% sales tax (these apply at retail, while the new tax applies at wholesale).
  • Who is legally responsible: The wholesaler (the “marihuana establishment” making the first sale or transfer to a retail licensee) is responsible for paying and remitting the tax. A wholesaler may collect the tax from the retailer, but the wholesaler remains legally liable either way.
  • “First sale or transfer” concept: The tax is intended to apply once at the point of the first transfer to a retail licensee, not repeatedly throughout the supply chain.
  • Wholesale price basics: For non-affiliated parties, the taxable wholesale price is the actual price paid (including taxes/fees on the invoice, but not the new 24% wholesale tax itself), and it cannot be reduced by rebates, trade allowances, exclusivity deals, or other discounts.
  • Affiliated parties and “average wholesale price”: For affiliated transactions (and certain internal “seed-to-sale” style operations), Treasury will use an “average wholesale price” calculated and published quarterly. Treasury has stated it is still determining methodology and will publish more as available.
  • Returns and payment timing: Treasury anticipates quarterly returns and remittance, but has also stated the implementation details are not finalized yet.
  • Where the revenue goes: Deposited into the Neighborhood Road Fund for infrastructure improvements.

Stay Informed on Michigan Cannabis Topics

Read the full WWMT coverage and hear what this means for Michigan’s cannabis cultivators: Read the story here.

We’ll continue to keep our partners and community informed as this situation develops. Huge thanks to WWMT Channel 3 for highlighting the cultivator perspective, consumers and our dispensary, and to EVERYONE who supports Michigan-grown cannabis. 💯😎🌱

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-Joe ‘Magic Plants’ Montgomery

Creative Director: Glacier Cannabis & Igloo Cannabis Store – Big Rapids

Glacier Cannabis is a Michigan Licensed Cultivator & Producer
The Igloo Cannabis Store is a Licensed Dispensary in Big Rapids Michigan

Official sources and references

• Michigan Department of Treasury: Wholesale Marihuana Tax landing page
  
• Michigan Treasury: Definitions and Terms
  
• Michigan Treasury: Wholesale Marihuana Tax FAQ
  
• Michigan Treasury Taxpayer Notice (Issued Nov 25, 2025)
  
• Michigan Legislature: Act 23 of 2025 (Comprehensive Road Funding Tax Act)
  
• WWMT coverage (local news source)
  

Disclaimer: This is an informational summary based on publicly posted guidance. For business decisions, confirm details with your tax professional and the latest Treasury updates.