Michigan Senate Panel Revisits Marijuana License Cap Bill with Tax Debt Provisions
A Michigan Senate committee revisited a bill Wednesday that would cap marijuana licenses and bar applicants with unpaid industry tax debt, as the sector adjusts to a new 24% wholesale tax.
LANSING, MICHIGAN — The Michigan Senate Regulatory Affairs Committee held a second round of testimony Wednesday on legislation that would cap marijuana industry licenses statewide and add new barriers for growers, processors, and dispensary operators with outstanding industry-related tax debt.
License Cap Tied to Population Ratios
Senate Bill 597, sponsored by Sen. Sam Singh (D-East Lansing), would limit marijuana retailer and wholesaler licenses to one per 10,000 residents in a given municipality, starting Jan. 1, 2026. Singh has previously compared the proposed framework to how Michigan regulates liquor sales.
The bill received its first committee hearing in October 2025, nearly a year after it was introduced. Wednesday’s session focused on recently proposed changes that add the tax debt restrictions, which supporters say would help stabilize an industry grappling with a new 24% wholesale tax.
Broader Package Addresses Hemp Products
SB 597 is part of a larger legislative package that includes Senate Bills 599 through 602, which seek to build a regulatory framework for consumable hemp products in Michigan. That portion of the package was primarily sponsored by Sen. Dayna Polehanki (D-Livonia).
The hemp-related bills target intoxicating products derived from hemp, including Delta-8 and other synthesized cannabinoids, which are currently sold at Michigan gas stations, convenience stores, and through online marketplaces. Those bills were advanced out of the Democratic-controlled Senate late last year.
Tax Debt Rules Aim to Shore Up Industry
The newly proposed changes to SB 597 would make outstanding marijuana industry-related tax debt a disqualifying factor for license applicants. Proponents say the measure would bring greater financial accountability to a sector that has faced economic pressure since the 24% wholesale tax took effect.
The committee hearing took place at the Michigan Capitol in downtown Lansing, according to Michigan Advance, which covered the session. No vote was taken Wednesday; the bill remains under committee review.
