Agency Report to JCAR – Page 2  
AGENCY REPORT TO THE  
JOINT COMMITTEE ON ADMINISTRATIVE RULES (JCAR)  
Under the Administrative Procedures Act (APA), 1969 PA 306, the agency that has the statutory authority  
to promulgate the rules must complete and submit this form electronically to the Michigan Office of  
Administrative Hearings and Rules (MOAHR) at MOAHR-Rules@michigan.gov.  
1. Agency Information:  
Agency name: Treasury  
Division/Bureau/Office: Bureau of Tax Policy  
Name, title, phone number, and e-mail of person completing  
this form:  
Margaret Patterson  
Administrative Law Specialist  
(517) 335-7478  
Treas_Tax_Policy@michigan.gov  
Margaret Patterson  
Name of Departmental Regulatory Affairs Officer reviewing  
this form:  
2. Rule Set Information:  
MOAHR assigned rule set number: 2019-051 TY  
Title of proposed rule set: General Sales and Use Tax Rules  
3. Purpose for the proposed rules and background:  
On November 6, 2018, Michigan voters approved a ballot initiative legalizing the recreational use  
and possession of marihuana for adults 21 years of age and older and enacting an excise tax on retail  
marihuana sales. The resulting legislation is the Michigan Regulation and Taxation of Marihuana  
Act (MRTMA). The 10% excise tax is levied in addition to any other applicable state taxes,  
including the existing 6% sales tax and, will be administered by Treasury.  
4. Summary of proposed rules:  
The addition of 1 new rule to the General Sales and Use Tax Rules clarifies that the taxable “sales  
price” of marihuana includes the 10% excise tax levied under section 13(1) of the MRTMA, 2018  
IL 1, MCL 333.27963(1). The new rule confirms that retail sales of recreational and medical  
marihuana are not exempt from taxation under the General Sales Tax Act, MCL 205.51 to 205.78,  
and the Use Tax Act, MCL 205.91 to 205.111, as food or prescription drugs.  
5. List names of newspapers in which the notice of public hearing was published and publication  
dates (attach copies of affidavits from each newspaper as proof of publication).  
Grand Rapids Press-September 11, 2019, Mining Journal-September 11, 2019, Oakland Press-  
September 11, 2019.  
6. Date of publication of rules and notice of public hearing in Michigan Register:  
September 15, 2019  
7. Time, date, location, and duration of public hearing:  
September 25, 2019-1:30 p.m. to 3:30 p.m. State Treasurer’s Board Room, First Floor  
Richard H. Austin Building, 430 West Allegan Street, Lansing, MI 48922  
Revised: June 21, 2019  
MCL 24.242 and 24.245  
Agency Report to JCAR – Page 2  
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit  
analysis on its website:  
http://www.michigan.gov/moahr  
9. List of the name and title of agency representative(s) attending public hearing:  
David Matelski, Administrative Law Specialist, Barbara Oyer, Administrative Law Specialist  
10. Persons submitting comments of support:  
No persons attended the public hearing to provide comments. No persons submitted any written  
comments.  
11. Persons submitting comments of opposition:  
No persons attended the public hearing to provide comments. No persons submitted any written  
comments.  
Revised: June 21, 2019  
MCL 24.242 and 24.245  
Michigan Office of Administrative Hearings and Rules  
611 West Ottawa Street; 2nd Floor, Ottawa Building  
Lansing, MI 48933  
Phone: (517) 335-8658 FAX: (517) 335-9512  
12. Identify any changes made to the proposed rules based on comments received during the public comment period:  
Name & Organization  
Comments Made at  
Public Hearing  
Written Comments  
Agency Rationale for  
Change  
Rule Number  
& Citation  
Changed  
1.  
2.  
3.  
4.  
13. Date report completed:  
October 8, 2019.  
Revised: June 21, 2019  
MCL 24.242 and 24.245  
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