The County Road Association of Michigan (CRA) today announced it has filed an amicus brief with the Michigan Court of Appeals in a case that could determine the future of the state’s new 24% wholesale marijuana tax, an important funding source for repairing and maintaining county roads and bridges across Michigan.
The case stems from a legal challenge to the wholesale marijuana tax, which was enacted as part of Michigan’s broader road funding package. After the Court of Claims allowed a lawsuit to move forward rather than dismissing it outright, the state asked the Michigan Court of Appeals to step in and provide clarity. CRA is urging the appeals court to hear the state’s appeal and resolve the issue promptly so that county road agencies can get on with their important work.
“If this tax is struck down, the impact will be real and immediate,” said CRA CEO Denise Donohue. “The Legislature and Governor purposely put this new type of revenue in place to strengthen how Michigan pays for roads and bridges. Most people don’t realize we are selling fewer gallons of gas now than at any time in the last 25 years, with the exception of 2020, due to increased gas mileage for all types of new vehicles. When you rely on gas tax as much as Michigan has historically, this explains in part why funding for roads has not grown proportionally. The wholesale marijuana tax is necessary to get to the funding level the Legislature envisioned, and which all 83 counties need to restore Michigan local roads and bridges.”
In its amicus brief, CRA outlines how state lawmakers and the Governor acted within their Constitutional authority in establishing the wholesale cannabis excise tax in the Comprehensive Road Funding Tax Act. The brief argues that the tax represents a lawful and essential addition to Michigan’s transportation funding framework, one designed to provide county road agencies with a stable revenue source to address long-standing infrastructure needs.
The filing also references CRA’s 2025 Michigan County Road Investment Plan, which highlights the depth of the infrastructure challenge facing local road agencies. The report details a growing bridge funding crisis across Michigan’s 83 counties and documents a significant shortfall in resources needed to maintain, restore and improve the state’s 90,500 miles of county roads. According to the Plan, 34% of federal aid-eligible county roads and 54% of local roads are currently rated in “poor” condition.
CRA represents all 83 county road agencies in Michigan, which together oversee the vast majority of the state’s local road and bridge network.
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