UPPER PENINSULA, Mich.(WZMQ) – Higher Love Cannabis Co. has suspended operations at five of its nine Upper Peninsula dispensaries.
According to a press release, the decision was driven primarily by the “mounting tax burden on Michigan’s adult-use cannabis industry,” stating that Michigan’s new 24% tax on certain wholesale marijuana sales and transfers introduced another substantial cost in a market already subject to a 10% retail excise tax and 6% sales tax.
“While these taxes apply at different stages of the supply chain and do not constitute a single combined tax rate, their collective impact has created an increasingly unsustainable operating environment – particularly for compliant businesses serving smaller and rural communities,” the release says.
Sunday, August 9, was the final day to place and pick up orders at Crystal Falls, Escanaba, Houghton, Munising and Ontonagon. Higher Love will continue operations at its dispensaries in Ironwood, Marquette, Menominee and Norway.
The release goes on to state, “This decision comes amid broader pressure across Michigan’s cannabis industry, where oversupply, price compression and declining revenue have already forced numerous businesses to consolidate, suspend operations facilities and eliminate jobs. The added tax burden has further strained the supply chain and made it increasingly difficult for responsible operators to remain viable. Higher Love joins industry leaders in calling for balanced policies that protect consumers while allowing businesses to retain employees, serve their communities and build a sustainable future.”
According to the company, its four remaining locations will be the foundation for Higher Love’s next chapter.
