Nik Rajkovic / news@whmi.com

Michigan's new 24% wholesale tax on cannabis products to pay for roads already is facing legal challenges, arguing there's no provision allowing it under the 2018 voter-approved initiative.

Both the Holistic Research Group and Michigan Cannabis Industry Association argue voter-approved issues such as the 2018 cannabis law, can only be amended with a three-quarter majority vote in the Michigan House and Senate.

The tax was approved 78-21 by the House, with 11 members not voting. However, the issue passed the Senate by a 19-17 vote, with one member not voting and one seat vacant.

"I think that Gov. Gretchen Whitmer is very astute. I don't think she would have introduced this concept had she not thought it was legal, to be able to pursue it," said state Rep. Ann Bollin, R-Brighton Township.

"It's $420 million, and I would say if we should lose as a state in that, then we need to find more cuts."

Bollin, chair of the House Appropriations Committee, says the marijuana tax was not anything Republicans in Lansing wanted or called for. She says it was pushed upon them by the governor's office from the get go.

"In negotiations, there's always somewhat of a trade off," Bollin told WHMI News. "But the governor and Democrats absolutely insisted on some sort of revenue increase, and were not willing to do it without at least equal number of cuts. And we were able to get over $800 million worth of cuts in this budget, close to a billion dollars, and that's significant."

Bollin said the tax was originally at 34 percent, but now brings it more in line with Michigan's tobacco tax.

Whitmer told reporters last week she's confident in the legality of the new wholesale tax.

"I am sympathetic to the industry. I don’t want to have anyone think we’re not. We worked very hard to make sure that we landed at the median in terms of taxes on cannabis in other states, especially our local states," she said.

You can listen to more of Rep. Ann Bollin's interview at the link below.