In Michigan, sprawling cannabis fields are indistinguishable from traditional farms, with plants reaching skyward from fertile ground and laborers busy during the autumn harvest. Advances in agricultural technology, like specialized grow lights and regulated temperatures, have made it possible for cannabis to flourish indoors as well.
Yet, there's a difference that Michigan's taxation department has held onto: marijuana isn't classified as agriculture when it comes to taxes. However, this perspective is being challenged.
A recent court decision, stemming from a 16-month legal tussle, permitted a southwest Michigan cannabis grower to enjoy farm tax exemption privileges. This groundbreaking move, the first for Michigan, was orchestrated by Detroit attorney Carl Rashid Jr. of Dykema Law, who represented HRP Cassopolis LLC, an indoor cannabis cultivator associated with several brands and a dispensary in Cassopolis.
The contention started when HRP Cassopolis, which possesses four Class C licenses allowing for up to 2,000 stackable plants, was told their farm was commercial property for tax purposes. Their efforts to change this classification via the March Board of Review and the Michigan State Tax Commission were unsuccessful.
HRP Cassopolis's argument was clear: given the Michigan Department of Agriculture and Rural Development's classification of cannabis as an "agricultural commodity," why was their property deemed commercial? Yet, the state remained steadfast, insisting cannabis cultivation wasn't agricultural.
Their perseverance led to an appeal in the 43rd District Court of Cass County, where the state tax commission's broad definition of agriculture was highlighted. Ultimately, Cass County Circuit Court Judge Carol Montavon Bealor confirmed cannabis cultivation's place within the agricultural sphere.
While this win signals potential tax benefits for other marijuana growers, it also opens conversations on how cannabis integrates into Michigan's massive $104 billion agricultural industry. Will Bowden, CEO of Grasshopper Farms, emphasized the need for recognition of outdoor cannabis cultivation as pure farming.
The majority of cannabis cultivation occurs indoors, yet farms like Grasshopper Farms in Paw Paw, with over 6,000 plants spread across 32 acres, and Lume, set to harvest 40,000 plants on a 70-acre plot, underscore the growing trend of outdoor cultivation, marrying traditional farming methods with modern crops.
Despite the ruling, cannabis growers must navigate the appeals process for tax reclassification, as the court's decision isn't nationally binding. Only rulings from higher Michigan courts would cement the status quo. As Mark Magyar from Dykema Law notes, cannabis cultivators now stand on the precipice of a defining moment, with this opinion offering a compelling argument.
The House Committee on Regulatory Reform has successfully forwarded Senate Bill 180 to the full House of Representatives without any changes. Previously, in June, the Senate had greenlit the proposal with a 29 to 9 majority.
Introduced by Republican Senator Roger Hauck, supported by six Democrat co-sponsors, the bill seeks to permit the Cannabis Regulatory Agency (CRA) to collaborate with an Indian tribe regarding marijuana-related businesses. A notable highlight of this legislation is that tribal marijuana business sales within Indian lands will not be subject to the State's customary 10% marijuana excise tax.
Should the House approve the proposal, it will next proceed to Governor Gretchen Whitmer's desk for evaluation.
It's essential to note that while Michigan legalized marijuana in 2018 via Proposal 18-1, the regulation did not address tribal land-based businesses. Senate Bill 180 aims to amend this oversight within the Michigan Regulation and Taxation of Marihuana Act (MRTMA). Key provisions include:
For a more comprehensive look into the proposal, you can access the full text of Senate Bill 180 here.
The proposed legislation aims to refine the "Michigan Regulation and Taxation of Marihuana Act" of 2018 by making amendments to various sections. The essence of the bill revolves around:
The bill's enactment is contingent upon the passage of Senate Bill No. 179 of the 102nd Legislature.
In a concerning pre-dawn string of events on October 1st, two marijuana dispensaries in Jackson County were targeted in what police believe to be coordinated burglaries by an identical group of assailants.
The initial incident transpired at Smart Choice, situated on Falahee Road in Leoni Township. The Blackman-Leoni Township Department of Public Safety revealed that officers were summoned to the scene at approximately 3 a.m. following the activation of a burglar alarm.
Upon arrival, law enforcement discovered forced entry through the store's door, noting that multiple suspects had infiltrated the dispensary, making away with 45 marijuana plants before vanishing from the vicinity.
Security footage from the incident captured images of five individuals, shrouded in masks, forcibly entering the store. The perpetrators were witnessed absconding with the stolen plants, utilizing a white Dodge Durango as their escape vehicle.
A mere four hours following this incident, at approximately 6:52 a.m., officers responded to a second break-in, this time occurring at Kinship Cannabis, located on N. Concord Road in Parma Township.
In a startlingly similar modus operandi, surveillance video from Kinship Cannabis disclosed six masked individuals pilfering an undetermined quantity of plants, once again making their departure in a white Dodge Durango.
The Jackson County Sheriff's Office, citing the striking resemblances in the two incidents, posits that both illicit entries were executed by the same cohort of suspects.
As of now, no apprehensions have been made. Investigations into these synchronized thefts continue, with law enforcement seeking any leads or information that could aid in the capture and prosecution of the perpetrators.
In recent years, Michigan has experienced a notable economic uplift from the legalization and subsequent sales of recreational marijuana, particularly in major cities like Detroit. With the inception of legal marijuana sales to adults in December 2019, the state has observed billions of dollars in receipts. However, juxtaposed with this economic gain is a concerning trend in youth interaction with the substance.
Statistics from the Detroit Public Schools Community District spotlight an increase in student suspensions related to the possession of drug paraphernalia or controlled substances. Specifically, suspensions have escalated from 289 incidents during the 2019-2021 academic years to 1,735 in the 2021-2023 span, as shared by Assistant Superintendent Alycia Merriweather. This rise is particularly notable, even when considering potential variables like pandemic-related school closures in 2020 and 2021.
The emerging data indicates a necessity to delve deeper into the underlying causes and potential mitigations of increased marijuana use among young people, ensuring that the economic advantages of legalization do not overshadow the well-being of the community's youth.
This October, cannabis enthusiasts and craft aficionados have a unique opportunity to mingle, connect, and celebrate at the Third Eye Craft Affair Pop Up in Lansing. With its roots deeply embedded in the local community, this event is not only a celebration of craft and cannabis culture but also a gathering that promotes inclusivity and a vibrant community spirit.
The Third Eye Craft Affair is returning home to Lansing, providing an exceptional experience for attendees at its usual haunt - The Fledge. With an ambiance that is both welcoming and exhilarating, attendees are invited to immerse themselves in an environment where creativity, unity, and the appreciation of cannabis converge.
From the early hours of 11am until 5pm, the Third Eye Craft Affair will enchant its visitors with a diverse array of activities and features, including:
The event is open to all adults, with entry available for those aged 18+ possessing a medical card, and 21+ otherwise, ensuring a safe and inclusive environment for all attendees. The Third Eye Craft Affair has also ensured that security and parking facilities are in place to provide a comfortable and secure experience for all.
With an affordable admission fee of $10, or $5 if you bring along 3 canned goods, the event not only guarantees an enthralling day out but also supports the local community through its charitable endeavors. The discounted admission with a donation underlines the affair's commitment to giving back to the community and promoting a spirit of generosity among its attendees.
The Third Eye Craft Affair Pop Up is set to be an unmissable event for those who cherish the vibrant interplay between craft culture and cannabis appreciation. Whether you're looking to discover new vendors, enjoy lively music, indulge in delicious food, or simply connect with like-minded individuals, this gathering in Lansing promises a day of enjoyment and camaraderie. Mark your calendars for October 22nd, and become part of a celebration that intertwines enjoyment with community spirit at The Fledge.
This fall, Wayne State University (WSU) in Michigan warmly welcomed students to its new undergraduate certificate program, spotlighting the fast-growing field of cannabis science. The program, which has seen a staggering increase from five to 100 majors since its introduction, is intended to lay a solid foundation in analytical chemistry, separation science, and laboratory research, specifically tailored for the cannabis testing industry.
Andrea Matti, an assistant professor of chemistry at WSU, expressed astonishment at the surge in interest. "The enthusiasm we've seen is just incredible. When I heard we had 100 majors, from just five, my reaction was, 'What? That's a 20-fold increase!' But it makes sense – we introduced cannabis," she shared.
The burgeoning program aims not only to equip students with the skills necessary for cannabis testing and regulation – covering both cannabidiol (CBD) and tetrahydrocannabinol (THC) – but also to pave the way for careers in a field that is experiencing both local and national growth. With the cannabis industry swiftly expanding, students immersed in its science can unearth new methodologies, establish new standards, and make noteworthy contributions.
Matti emphasized the significance of providing opportunities for students who harbor a genuine interest in laboratory work and testing, even if they do not aspire to enter the healthcare sector. "Many of our majors are pre-med, pre-pharm, or pre-PA. However, I also wanted to provide a pathway for students who are passionate about learning regarding these instruments and desire a career in lab and testing environments," she elaborated.
To be eligible for the cannabis chemistry certificate, students must have completed a minimum of 60 credits and maintain a GPA of 2.5 or above. Notably, the program also welcomes students who have previously secured a bachelor's degree from any institution.
In a related vein, the University of Michigan-Flint recently embraced the expanding interest in cannabis through its academic offerings. The university unveiled a new course this fall titled "The History and Culture of Cannabis," marking its inaugural step into the academic study of marijuana. This course endeavors to provide students with an exhaustive overview of the historical, present-day, and future contexts of cannabis, spanning its cultural, economic, and sociopolitical influences.
Both Wayne State University and the University of Michigan-Flint are contributing to a growing trend in the U.S., where academic institutions are increasingly incorporating cannabis-focused courses to meet the rising demand for informed research and knowledge in the field.
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