In the month of February, Notices of Assessment for the 2024 tax year will be sent to taxpayers in the State of Michigan. The Notice of Assessment will include the Classification of your property in addition to the Assessed/State Equalized and Taxable Values. Licensed Medical or Adult-Use Marijuana Growers should pay particularly close attention to their Notices of Assessment, as they have an opportunity to pursue substantial property tax savings. If your real property is classified as Agricultural property, you will qualify for an exemption from the tax levied by the local school district ..read more

In 2023, historic strides were made in the efforts to pass federal legislation to protect financial institutions that do business with the cannabis industry. The SAFE Banking Act is a bill that aims to protect banks that serve legal cannabis businesses from federal penalties. The bill was first introduced in 2019 and passed the House of Representatives numerous times but stalled in the Senate during each session. That was, until this year. The Senate Banking Committee, by a notable bipartisan majority of 14-9, on September 27, passed their version of the bill (The SAFER Act) out of committee ..read more

It’s been an active few weeks in Michigan on the psychedelics front, with activity on both the legalization and law enforcement sides of the issue. Here’s a quick recap of two important bits of psychedelic news. First, State Senator Jeff Irwin re-introduced a bill that would decriminalize certain psychedelic plants and fungi on a statewide basis. The decrim bill would NOT create a regulated, legal market like those in Oregon and Colorado, but rather would allow personal growth and consumption, along with a little leeway to receive payment for services associated with psychedelic consumption. F ..read more

As readers of this blog and the cannabis industry are aware, the conflict between state and federal law on the issue of cannabis is a constant source of tension, struggle, and frustration for the cannabis industry, their employees, and those who provide services to the industry. Among the many sources of consternation is the unwillingness of many financial institutions to provide services to the cannabis industry given its illegal status under federal law. While most cannabis businesses have access to traditional business checking account services, they generally lack access to the full suite ..read more

In a significant decision for cannabis advocates and the cannabis industry, on September 1, 2023, the Michigan Court of Appeals issued an opinion directing the placement of a cannabis-related charter amendment on the November 7, 2023, ballot for the residents of the City of Keego Harbor, Michigan, to consider on Election Day. Thanks to the Court’s decision, the voters of Keego Harbor have the chance to directly determine whether they wish to permit recreational marijuana retailers in their community. John Fraser served as lead attorney on the matter in the Oakland County Circuit Court and the ..read more

In a first-of-its-kind decision, the Cass County Circuit Court has ruled in favor of HRP Cassopolis, LLC, a Michigan-based cannabis business, in their dispute with the LaGrange Township assessor. A potential milestone for the cannabis industry, this ruling sheds light on the legal classification of cannabis cultivation and its eligibility for agricultural tax-related benefits. Dykema attorneys Carl Rashid, Jr. and Mark Magyar were proud to deliver this victory for HRP. While HRP primarily focuses on growing and harvesting cannabis on one of the two parcels it owns at 980 E. State Street in Cas ..read more

While more and more states move to legalize various uses of cannabis, a recent decision on an application for U.S. citizenship demonstrates its possession, use, and distribution remain illegal under federal law and can have significant consequences. The U.S. Citizenship and Immigration Service (USCIS) and State Department routinely deny visa applications by foreign nationals engaged or planning to engage in, the cannabis industry both abroad and in the United States because these activities violate federal controlled substance laws. Salvadoran citizen Maria Elena Reimers’ application for U.S ..read more

After advancing through 13 committees and narrowly winning a 34-33 vote, Minnesota’s State Senate finally approved a bill to legalize adult-use cannabis on April 28th. But before it reaches the desk of Governor Tom Walz (who has pledged to sign it), the bill with have to move to a conference with the State House to reconcile differences with a companion reform measure passed three days prior. With the session ending on May 22nd, the clock is running for lawmakers to get the final bill in front of the governor. Here’s what sets the two versions apart: Local Autonomy The Senate would grant loca ..read more

The Food and Drug Administration (FDA) issued warning letters to five companies late last month on Monday, November 21, 2022, claiming that they are illegally selling products containing cannabidiol (CBD). The companies targeted are 11-11-11 Brands, CBD American Shaman LLC, Infusionz LLC, Naturally Infused LLC, and Newhere Inc. dba CBDFX. In its Constituent Update, the FDA states broadly that the companies are selling CBD products “that people may confuse for traditional foods or beverages which may result in unintentional consumption or overconsumption of CBD.”[1] Historically, the FDA has fo ..read more

The 2022 general election saw cannabis on the ballot in 32 municipalities across Michigan. With the votes tallied, it appears that 13 municipalities voted in favor of initiatives to expand cannabis access that were on the ballot. Some of those municipalities voted to allow cannabis businesses for the first time, while others voted to expand legal access from only medical to adult use. Many of the proposals, both for or against, came back very close, suggesting that the issue remains a divisive one despite the additional tax revenue received by municipalities that already allow cannabis busines ..read more