Michigan Court of Appeals Finds Medical Marijuana Provisioning Center Not Entitled to Sales Tax Exemption

The Michigan Court of Appeals affirmed the Court of Claims’ decision denying Taxpayer’s exemption from sales tax claim, under the Michigan Medical Marijuana Act (MMMA), for tax year 2017. The Department of Treasury issued an assessment to the taxpayer, a medical marijuana provisioning center, for sales of medical marijuana in 2017. The taxpayer claimed that it was exempt from paying sales tax under the MMMA’s caregiver exemption. The Court of Claims granted summary disposition in favor of the Treasury. On appeal, the Court of Appeals upheld that the taxpayer was required to collect and remit sales tax on retail sales ...