Michigan could have some of the lowest tax rates on recreational marijuana in the nation if Michigan residents choose to legalize it at the polls in November.
To date nine states have legalized marijuana use, each with their own approach to taxing the substance.
The Michigan proposal would make recreational marijuana legal for those 21 and over, with a 10 percent excise tax on the sale price, as well as the standard state sales tax rate of 6 percent. Excise taxes are paid by the retailer under the proposal, while sales tax is paid by the consumer.
“We didn’t want to be the highest in the country,” said Josh Hovey, spokesman for the Coalition to Regulate Marijuana Like Alcohol. “Where we sit with the rest of the country is a good thing.”
Discouraging the black market
The Coalition to Regulate Marijuana Like Alcohol consists of multiple cannabis activist groups, the ACLU and drug policy reform groups. They’ve hired Hovey, a vice president at the public relations firm Truscott Rossman, to lead communications.
The coalition drafted a proposed law to legalize the recreational use of marijuana, limiting its use to those over 21 and continuing bans on smoking in public places or driving under the influence. [Read more at Michigan Live]