LANSING, Mich. (WLNS) -- Shortly after Gov. Gretchen Whitmer signed the new Michigan budget for the 2026 fiscal year into law, a prominent cannabis trade group sued to block a planned tax from taking effect.

Filed Tuesday in the state Court of Claims and signed by Rob Schneider, director of the Michigan Cannabis Industry Association, the lawsuit asks the court to stop a 24% wholesale tax on cannabis scheduled to begin Jan. 1, 2026.

As part of the road funding plan, Michigan's $81 billion budget adds a 24% tax on wholesale marijuana. It would be in addition to the state's 10% excise tax and 6% sales tax -- the sales tax is applied to the full price including wholesale and excise taxes. The rate is lower than a 32% tax Whitmer floated earlier this year to generate $470 million for roads an

See Full Page