Medical marijuana cardholders in Michigan will see a tax increase (file photo).
DETROIT (AP) — Michigan’s marijuana industry likely won’t face any federal changes, though the state’s Treasury Department has altered a tax on medical marijuana cardholders.
The Detroit Free Press reports that the federal budget passed last week indicates the government will continue to not enforce federal drug laws in states with legalized medical marijuana.
But Michigan’s Department of Treasury said earlier this year it expects medical marijuana cardholders to pay a 6 percent tax on purchased products regardless where it’s sold. The tax will now apply to product bought from a caregiver, who is certified to grow a certain amount of plants for patients.
The tax will be an honor system for those patients because they’ll have to claim what they’ve purchased on their annual state tax returns as a use tax.
Information from: Detroit Free Press, http://www.freep.com