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Michigan Proposes Cutting Medical Cannabis Fees

Due to new laws in Michigan after voters approved adult-use cannabis legalization last year, medical cannabis registration and renewal fees are expected to fall and there will be a decrease in the excise tax rate.

Full story after the jump.

The Michigan Department of Licensing and Regulatory Affairs has proposed several cuts to fees for its medical cannabis program, according to a Detroit Free Press report.

The rules are expected to take effect later this year. Representatives of the state said in a filing that they’re lowering fees because the program is now cheaper to operate than it was at launch.

“The revenue generated based on the current application fee for the past three years is approximately 90-100% more than (the department’s) operational expenses.” — Department of Licensing and Regulatory Affairs in its filing with the Office of Regulatory Reinvention

The changes lower the cost of a two-year medical card from $60 to $40. Other fees will be completely eliminated, such as a $10 fee for changing address and a $25 background check fee for cannabis caregivers. There is now also a longer window for renewal when a medical card expires.

Tax rates on retail cannabis will also decrease due to the elimination of a 3 percent excise tax.

Fees for Michigan’s medical cannabis program have been declining at two-year intervals since the program launched in 2008. A spokesperson for the department said there is still enough of a cushion built for the program that it is expected to continue getting cheaper for at least the next five years.

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