Frequently Asked Questions
How often will wholesalers need to remit the new wholesale tax and file returns with Treasury?
Treasury plans to require taxpayers to remit the wholesale marihuana tax on a quarterly basis. Treasury is currently working to determine how quickly the quarterly filing and payment rules can be implemented. More information will be available soon.
What happens if a retail marihuana product is returned to the wholesaler and the wholesaler refunds the purchase price, but the wholesale tax charged on the transaction has already been remitted to Treasury? Will Treasury refund the amount of tax paid?
If retail marihuana product is returned, the wholesaler should return or credit the retail licensee’s entire purchase price, including the wholesale tax. If a tax return has already been filed reporting this sale and tax, the wholesaler should amend that tax return, provided the merchandise was voluntarily returned, and the return was made within the time period for returns stated in the wholesaler’s refund policy or 180 days after the initial sale, whichever is earlier. This is similar to how sellers account for refunds of Michigan’s general sales tax made to purchasers when products are returned.
Metrc is not currently equipped to capture when wholesale tax paid as cannabis moves through the system. What does Treasury recommend as best practice for recording and tracking wholesale marihuana tax?
Taxpayers should consult their accountants or other professional business advisors for advice regarding issues such as recording and tracking tax paid on wholesale marihuana transactions.
