The tax—which took effect Jan. 1, 2026—applies to the first sale or transfer of adult‑use marijuana from a licensed marijuana establishment to a marijuana retail licensee. Treasury’s Revenue Administrative Bulletin outlines who must pay the tax, how it must be calculated and when the tax is due.
“We know this is the first year of a new tax, and we want to help businesses adjust smoothly as we implement this policy,” State Treasurer Rachael Eubanks said. “As a transition‑year measure, Treasury is providing relief from penalties and interest for businesses that make good‑faith quarterly payments. The guidance outlines what businesses need to do, and we encourage everyone to begin reporting and making their quarterly payments starting with the first period ending March 31.”
Under the law, the wholesaler—the business making the first sale or transfer to a retailer—is responsible for paying the tax. This includes growers, processors, seed‑to‑sale microbusinesses that package their own products for retail and medical provisioning centers that transfer product to their adult‑use license.
A taxable sale occurs when ownership of cannabis transfers to the retailer. This may be based on the businesses’ contract or standard business practices.
The bulletin offers clear examples to help businesses understand what to do if products are returned, do not meet standards, are repackaged or are transferred between related companies.
“Feedback from our marijuana industry partners played an important role in shaping this guidance,” State Treasurer Eubanks said. “We appreciate their involvement and collaboration throughout the process.”
*How is the tax calculated? *
If two businesses are not related, the tax is based on the actual price the retailer pays for the marijuana product.
But if the businesses are related—or the company grows and sells its own product—Treasury uses a standard “average wholesale price list” that is updated every quarter. Because these prices may change every three months, it is important for cannabis businesses to report and pay on time.
For tax year 2026, Treasury will require good-faith quarterly Wholesale Marijuana Tax payments.
Businesses are expected to begin making quarterly payments based on their activity for each quarter. Payments for 2026 will be due April 20, July 20 and October 20. A full set of quarterly tax returns for all of 2026 will then be due on Jan. 20, 2027, along with any remaining tax owed for the first three quarters and the full amount owed for the fourth quarter.
Because this is a transition year, Treasury will waive penalties and interest for the first three quarters of 2026 if a business pays at least 75 percent of what it ultimately owes for each quarter and files all required 2026 returns with full payment by Jan. 20, 2027.
Beginning in 2027, quarterly tax returns and full payment will be due each quarter.
While this message highlights key points, the Revenue Administrative Bulletin [ https://www.michigan.gov/taxes/rep-legal/rab/2026-revenue-administrative-bulletins/revenue-administrative-bulletin-2026-3 ] contains Treasury’s official guidance. We encourage all taxpayers to review it carefully.
Under state law, revenue from the Wholesale Marijuana Tax will be used to fix roads and bridges.
Rep. Steele urges federal action to protect Great Lakes Maritime Academy cadets during shutdown
State Rep. Donni Steele this week sent a letter to U.S. Senators Gary Peters and Elissa Slotkin urging immediate action to address the impact of the ongoing partial federal government shutdown on cadets at the Great Lakes Maritime Academy in Traverse City.
Steele said the shutdown has forced the closure of U.S. Coast Guard Regional Exam Centers that administer the licensing exams required for maritime academy cadets to graduate and begin their careers.
Under federal law, cadets at state maritime academies must pass their U.S. Coast Guard merchant marine officer license exams as a condition of graduation. The exams consist of seven modules administered over four days. While many cadets at the Great Lakes Maritime Academy completed their exams in January, roughly 20 cadets still need to begin or retake modules. If the exam centers remain closed, cadets in the academy’s Class of 2026 will be unable to receive their licenses and most will not receive their degrees.
“These cadets have completed an incredibly demanding four-year program, including 360 days of sea service and rigorous academic work,” said Steele (R-Orion Township). “Through no fault of their own, they are now at risk of losing the opportunity to graduate and begin careers that are critical to our nation’s maritime industry and national security.”
Steele noted that the maritime industry already faces a shortage of licensed mariners and that the Great Lakes Maritime Academy plays a unique role in preparing graduates to serve aboard vessels operating on the Great Lakes. In her letter, Steele urged federal leaders to restore essential Coast Guard exam functions immediately so cadets can obtain their licenses and begin contributing to the nation’s maritime workforce.
“We need these cadets,” Steele said. “They are ready to go to work, serve their country, and support industries that are vital to the Great Lakes region and the United States.”
“As we enter severe weather season, it’s important for every Michigander to prepare,” said Governor Gretchen Whitmer. “The importance of severe weather awareness is clearer than ever following last week’s deadly tornadoes. I encourage every Michigander to take time now to make a plan, build an emergency kit, and sign up for local emergency alerts. Preparing today can save lives when minutes matter. Let’s work together and stay safe.”
“Household emergency plans are critical to family safety, particularly because severe weather can strike without warning,” said Dr. Natasha Bagdasarian, chief medical executive. “Families may not be in the same place when a severe weather event occurs, so it is important to create a plan for all of your loved ones to stay in touch and know what to do and where to go to stay safe.”
Severe weather conditions can occur during any season and pose threats to public health. A series of tornadoes in southwest Michigan Friday, March 6, caused widespread power outages, devastating property damage and at least four deaths. Gov. Gretchen Whitmer declared a state of emergency for Branch, Cass and St. Joseph Counties to assist with response and recovery efforts.
Residents were faced with many challenges, including:
* Loss of heat and running water (if relying on a well).
* Hazardous travel conditions and impassable roads.
* Loss of phone and cellular service.
* Loss of food and medicines that require refrigeration.
* Inability to keep electricity-powered medical devices running.
* Frigid temperatures and inability to heat homes.
State and local agencies have information that can help residents plan for weather-related emergencies based on their specific needs. Some resources include:
I am at the Oakland County Emergency Operation Center and am monitoring the situation at Temple Israel in West Bloomfield. Our team been activated and we’re supporting law enforcement officers in keeping the community safe. We are holding the Jewish Community close and will always reiterate that antisemitism has no place in Oakland County. We appreciate the quick action of the West Bloomfield Police Department, Oakland County Sherrif’s Office and all collaborating partners.
