Michigan Cannabis Retailer Not Caregiver, Must Pay Sales Tax

A cannabis vendor is liable for sales tax because it isn’t an exempt caregiver under state law, the Michigan Court of Appeals held.

Cannarbor Inc. was an unlicensed provision center that included commercial property selling marijuana at retail, and retail is subject to sales tax, the court held in an unsigned opinion. Caregivers, on the other hand, provide services to patients, it said Tuesday.

The retailer argued that under 2011 state treasury guidance, Cannarbor was an exempt caregiver that provided medical marijuana to patients. The business said a taxpayer’s only guidance for whether or not it had to pay the ...