Michigan Can’t Collect Sales Tax On Medical Marijuana Sales

The state Treasury says clinics, caregivers, and patients do not have to pay sales taxes on medical marijuana unless the Legislature changes the law approved by voters in 2008. At least one shop in Traverse City does collect tax from its customers. The medical marijuana law was enacted by voters in 2008, but the law is silent on the question of taxing medical marijuana dispensed by licensed clinics and caregivers.

James Campbell, an accountant who asked for the opinion, says the state has not been taxing dispensaries and caregivers. But Campbell says he could not be sure that wouldn’t change.

“According to the Department of Treasury, it’s pretty clear cut that they are not authorized to tax medical marijuana, but the simple fact is that the state’s broke, it’s looking for revenue, and we’ve got a brand-new economy that’s really starting to thrive and would be a good source of revenue for the state,” he says.

Campbell works for medical marijuana clinics.

A letter to Campbell from the state Treasury says the medical marijuana law does not authorize a tax, and it does not allow the Michigan Department of Community Health to share the information needed to collect the sales tax on medical marijuana purchases. The letter says that would require a change in state tax laws.

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