MICHIGAN DEPARTMENT OF TREASURY
STATE TREASURER
NOTICE OF PUBLIC HEARING
ADMINISTRATIVE RULES 2019-052 TY
TAXATION OF ADULT-USE (RECREATIONAL) MARIHUANA RULES
ADMINISTRATIVE RULES 2019-051 TY
GENERAL SALES AND USE TAX RULES
SPECIFIC SALES AND USE TAX RULES
The Michigan Department of Treasury Bureau of Tax Policy will hold a public hearing at the
following time and place to receive comments by interested persons on 3 proposed new rules that
implement the excise tax on marihuana retailers and marihuana microbusinesses and clarify 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.
Date:
September 25, 2019
Time:
1:30 p.m. – 3:30 p.m.
Location:
State Treasurer’s Board Room, First Floor
Richard H. Austin Building
430 West Allegan Street
Lansing, Michigan 48922
Interested parties may also submit written comments on the rules to the Department of Treasury,
Bureau of Tax Policy, Tax Policy Division, Attn: David Matelski, 430 West Allegan St., Lansing,
Michigan
48922,
or
by
facsimile
to
517-241-4267,
or
electronically
to
Treas_Tax_Policy@michigan.gov by no later than 5:00 p.m. on September 25, 2019.
The Michigan Regulation and Taxation of Marihuana Act (MRTMA) directs that the excise tax is
imposed at the rate of 10 percent of the sales price for marihuana sold. MCL 333.27963(1). The
MRTMA also directs that a product subject to the excise tax may not be bundled in a single
transaction with a product or service that is not subject to the excise tax. MCL 333.27963(2). One
of the new Taxation of Adult-Use (Recreational) Marihuana Rules defines “sales price” and the
other defines “bundled transaction” and clarifies the tax result of a bundled transaction.
The new General and Specific Sales and Use Tax Rule clarifies that the excise tax is levied in
addition to the sales tax and that retail sales of recreational and medical marihuana are not exempt
from taxation as food or prescription drugs.
The Taxation of Adult-Use (Recreational) Marihuana Rules are promulgated by authority conferred
on the Department of Treasury by section 3 of 1941 PA 122, MCL 205.3, and by section 13 of the
MRTMA, 2018 IL 1, MCL 333.27963(3). The General and Specific Sales and Use Tax Rule is
promulgated by authority conferred on the Department of Treasury by section 3 of 1941 PA 122,
MCL 205.3. These rules will take effect immediately upon filing with the Secretary of State.
The rules are published on the Michigan Government website at http://www.michigan.gov/moahr
and will be in the September 15, 2019 issue of the Michigan Register. Copies of the draft rules
may also be obtained by mail or electronic request at the addresses above.