Proposed tax changed as Michigan House preps vote on major medical marijuana package

LANSING, MI — Medical marijuana dispensaries would be taxed at 3 percent, and customer patients would also pay the state's six-percent sales tax, under legislation set for a vote Wednesday in the Michigan House.

The proposed dispensary tax was lowered from 8 percent in a substitute bill adopted by the House on Tuesday, and the medical tax would be eliminated if recreational marijuana use and taxable sales are later authorized in the state.

The three-bill package would make major changes to the state's medical marijuana program, approved by voters in 2008. While it would not end the patient-caregiver system that allows for home growing, it would create a separate regulatory framework for medical marijuana businesses.

The legislation would regulate dispensaries, create licenses for growers and distributors, establish a "seed-to-sale" tracking system for medical marijuana and clarify that patients can use non-smokable forms of the drug.

Marijuana businesses could only operate in municipalities that...

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