Reporting and Remitting Tax to Treasury

Frequently Asked Questions

When must the Wholesale Marijuana Tax be reported and paid to Treasury?

The Wholesale Marijuana Tax on any given transaction is due in the quarter that the product is sold to the retailer. Quarterly periods and due dates are as follows:

1. Quarter 1: January 1 – March 31; due April 20
2. Quarter 2: April 1 – June 30; due July 20
3. Quarter 3: July 1 – September 30; due October 20
4. Quarter 4: October 1 – December 31; due January 20

Treasury will require quarterly Wholesale Marijuana Tax payments beginning first quarter (January 1 - March 31) 2026. Electronic payment for the Wholesale Marijuana Tax will be available on March 31, 2026 and information about that process will be shared on the Wholesale Marijuana Tax webpage as it becomes available.

Treasury is currently developing the quarterly Wholesale Marijuana Tax return. Taxpayers should keep sufficient records to correctly identify required quarterly payment amounts throughout 2026 and in preparation for filing the first three quarters separately when the form becomes available in November 2026.

Since 2026 is a transition year, Treasury will waive penalties and interest for the first three quarters if a business submits at least 75 percent of its tax liability each quarter and files all 2026 quarterly returns with full payment by January 20, 2027. Beginning tax year 2027, quarterly returns and full payment of the tax will be due every April 20, July 20, October 20, and January 20.

What happens if a retail marijuana 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 marijuana 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 Marijuana Tax?

Taxpayers should consult their accountants or other professional business advisors for advice regarding issues such as recording and tracking tax paid on wholesale marijuana transactions.