Michigan Medical Marijuana – Lost Potential Tax Revenue

A very hot topic in Michigan law right now is medical marijuana. As you can read about in our previous entries to this blog, the Michigan Court of Appeals has recently issued some decisions that limit the application of the Michigan Medical Marihuana Act (MMMA).

Like any controversial topic, there are people who feel very strongly about both sides of this issue. Some feel the MMMA is encouraging too many people to use marijuana, which they feel should be illegal under any circumstance. Other people feel that the MMMA is not liberal enough and that marijuana should be legalized in general.

Finding A Compromise in Michigan Medical Marihuana Act

A blog article from Amy Lane of Crain’s Business Detroit suggests a middle ground: tax the money caregivers make while in compliance with the MMMA, but do not completely legalize marijuana. Whichever side people take about legalizing weed in Michigan, other states are making money on pot by adopting Marijuana sales tax laws. Marijuana caregivers in the state of Michigan can legally supply marijuana directly to up to five patients (though dispensaries that sell marijuana are now illegal, according to the Michigan Court of Appeals). The caregivers can receive reasonable compensation for their time and effort, and the Michigan medical marijuana law makes it clear that this reasonable compensation is not to be considered a sale. Because it is not a sale, this transfer of money is not currently taxed. Lane writes on the possibility of amending the Michigan sales tax law to tax this transaction as a sale of a good. This would be a way to raise revenue during Michigan’s struggling economic times. Now, instead of making money on the sale of marijuana, Michigan continues to spend millions policing, prosecuting, and jailing people for being involved with pot.

If you have a problem related to medical marijuana or marijuana in general, you should speak with a criminal defense attorney. The law in this area is changing rapidly, and if one is not careful, they could find themselves charged with a marijuana crime Like all drug charges, marijuana charges can be very serious. It is always best to consult with an experienced, aggressive Michigan attorney if you are facing charges for marijuana or any other drug.

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