County Road Association Joins Lawsuit Over Michigan Marijuana Tax

The association says the 24% tax is critical for funding road and bridge work across the state.

Published on Feb. 10, 2026

The County Road Association of Michigan has filed an amicus brief in a lawsuit challenging the state's 24% marijuana tax. The association says the tax revenue is crucial for funding road and bridge projects across the state, and that without it, they will not have enough money for necessary infrastructure work. Meanwhile, a cannabis industry leader says the tax has significantly impacted their business, forcing them to cut employee perks and benefits.

Why it matters

The marijuana tax revenue has become an important source of funding for Michigan's road and bridge maintenance, as traditional gas tax revenue has declined. The lawsuit challenging the tax could jeopardize this new funding stream if successful, potentially leaving the state's infrastructure in a precarious position.

The details

The County Road Association of Michigan has filed an amicus brief in support of the state's 24% marijuana tax, which is being challenged in court by the cannabis industry. The association's CEO, Denise Donohue, says the tax revenue is "historic" and "critical" for funding road and bridge work across Michigan. Meanwhile, Joni Moore, the president of Higher Love, a cannabis company, says the tax has significantly impacted their business, leading to layoffs and reduced employee benefits, though they have tried to avoid passing the tax on to consumers.

  • The marijuana tax in Michigan has just been challenged in court by the cannabis industry.

The players

County Road Association of Michigan

An association that represents county road agencies across the state of Michigan.

Denise Donohue

The CEO of the County Road Association of Michigan.

Joni Moore

The president of Higher Love, a cannabis company in Michigan.

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What they’re saying

“We need this legislation to come through. It is historic. They have never passed anything this big and important for roads. And we certainly, definitely need that to happen.”

— Denise Donohue, CEO, County Road Association of Michigan (uppermichiganssource.com)

“We don't plan on closing any stores. We've already gone through our layoffs. We reduced the perks that we give employees. They still receive benefits; we didn't cut anybody's wages.”

— Joni Moore, President, Higher Love (uppermichiganssource.com)

What’s next

The lawsuit challenging the 24% marijuana tax in Michigan is ongoing, and the outcome could have significant implications for road and bridge funding in the state.

The takeaway

The battle over Michigan's marijuana tax highlights the complex interplay between the cannabis industry, state infrastructure needs, and the ongoing evolution of drug policy. As the legal cannabis market matures, finding the right balance between taxation, business viability, and public good will be an ongoing challenge for policymakers.