Michigan Lt. Gov. Nominee Files Bill To Suspend Cannabis Tax

DeBoyer's bill targets the 24 percent wholesale tax

Rep. Jay DeBoyer (R) introduced legislation this week that would suspend the 24 percent wholesale cannabis tax enacted by Gov. Gretchen Whitmer (D).

DeBoyer is the Republican nominee for lieutenant governor, according to Marijuana Moment, which reported the filing on Oct. 29. The outlet described the tax as recently enacted.

The initial report didn't include a bill number, a cosponsor list, or the mechanics of the suspension. As described, the measure would pause the tax rather than repeal it. That distinction matters. It decides how long licensees could count on relief.

The filing lands days before the general election

The bill arrives just ahead of the Nov. 3 general election, so it works as a campaign marker as much as a policy vehicle.

A candidate for statewide office filing a tax-relief bill against a Democratic governor's signature policy is a deliberate message. Cannabis operators are a visible, organized constituency, and the wholesale tax is a clean target.

Whether the bill gets a committee hearing is the first test. Not yet known.

The filing reads less like a bill built to pass this session and more like a position paper with a bill number attached.

A wholesale layer stacks on top of retail taxes

Michigan's adult-use market already carried a 10 percent excise tax and a 6 percent sales tax at retail before the 24 percent wholesale levy.

Those retail taxes come from the 2018 voter-approved initiative, while the wholesale tax hits earlier in the supply chain, when product moves between licensees, so it lands on cash flow before a single unit reaches a shelf.

Can operators pass it through? That depends on the market. In a state where flower prices have been under pressure, many can't. Where 280E still applies, deductions are limited, so a tax paid on the way in is even harder to absorb.

Licensing falls to the Michigan Cannabis Regulatory Agency (CRA), but tax design sits with the legislature and the governor. That's why a filing like DeBoyer's matters to operators even at long odds.

Hemp-derived THC sits on the other side of the tax line

A higher tax on regulated marijuana widens the price gap with hemp-derived THC products, which don't carry the same levy.

That's the argument I'd expect from licensed operators. It rests on chemistry. THCA converts to delta-9 THC through decarboxylation when heated, and the standard total-THC calculation applies a conversion factor of 0.877 to THCA content. A hemp flower that tests under the delta-9 limit can still deliver a high-THC product once it's smoked or vaped.

Federal law is moving on that point. The federal hemp redefinition enacted in November 2025 shifts the test toward total THC and is set to take effect in mid-November 2026, about two weeks from now. If it holds as written, the hemp price advantage shrinks. If it's delayed or narrowed, the gap with a 24 percent tax-burdened regulated market grows.

This is unsettled. For full background on the levy itself, see the CannIntel topic hub on the Michigan wholesale cannabis tax.

What's missing from the filing, and what to watch

The bill's text, sponsorship, and committee path will determine whether this is a serious relief effort or a campaign-season signal.

Three details would sharpen the picture:

• The bill number and the length of the proposed suspension.
• Whether any Democrats sign on as cosponsors.
• Any revenue offset, since the tax funds state priorities the bill would have to replace.

The last point is the hard one. Suspending a tax without naming a replacement runs into the budget, and that's usually where relief bills stall. That math is hard to argue with.

Watch next for whether the bill draws a committee referral after the Nov. 3 election. Expect enforcement and market effects of both the tax and the federal hemp change to vary, and treat any timeline as unsettled.