Michigan Cannabis Banking

2025 Cannabis banking in Michigan: Current rules and regulations

Cannabis is legal in Michigan for both medical (2008) and adult-use (2018). Adult-use was approved by voters via the Michigan Regulation and Taxation of Marihuana Act (MRTMA), with retail sales beginning December 1, 2019. Medical use has been legal since the Michigan Medical Marihuana Act (2008). Day-to-day oversight is handled by the state’s Cannabis Regulatory Agency (CRA), which licenses, inspects, and enforces compliance for all state-legal cannabis businesses. (Michigan Legislature, Michigan, Michigan Public)

Taxes & pricing: Adult-use purchases are subject to a 10% marihuana retailers’ excise tax plus 6% sales tax; Michigan Treasury also clarifies that the 6% sales tax applies to the price that includes the 10% excise tax (i.e., “tax on tax” for sales-tax purposes). See Treasury’s MRE tax page and Revenue Administrative Bulletin 2020-17. (Michigan)

Where the money goes: For FY 2024 distributions (paid Feb. 2025), Treasury announced nearly $100 million to 302 local entities and tribes—with more than $58,200 per licensed retailer or microbusiness—plus $116 million each to the School Aid Fund and Michigan Transportation Fund. Details are in the Treasury press release (Feb. 21, 2025). (Michigan)

Rules & enforcement (2025 updates): The CRA refreshed its disciplinary guidelines (effective July 1, 2025) and continues to publish monthly stats (licensing volumes, sales trends, average flower price). The agency also held a public hearing on proposed rule changes in May 2025. (Michigan)

Seed-to-sale tracking: Michigan uses Metrc statewide; licensees must maintain inventory and transfer records in the system to remain compliant. (Michigan)

Local control & siting: Under MRTMA §6 (MCL 333.27956), municipalities may opt out or limit the number of establishments and regulate time, place, and manner so long as rules aren’t “unreasonably impracticable.” Operators should confirm zoning, buffers (e.g., around schools), and caps before leasing or building. (Michigan Legislature)

Consumption lounges & events: Michigan permits designated consumption and temporary marijuana events subject to CRA licensing; organizers must apply at least 90 days in advance and meet venue/operational requirements. See CRA reminder (Feb. 5, 2025). (Michigan)

Hemp-derived intoxicants (delta-8, etc.): Michigan regulates intoxicating hemp products within the marijuana system; HB 4517 (PA 56 of 2021) revised definitions and brought these products under CRA oversight. (Michigan Legislature)

Tribal-state integration (2025): The state signed its first cannabis compact with the Bay Mills Indian Community (finalized July 25, 2025), enabling participation in Metrc and access to wholesale/distribution channels. See LARA press release. (Michigan)

Federal banking context: The SAFER Banking Act (S.2860) remains pending; in July 2025 Michigan’s AG joined a bipartisan coalition urging passage. Until federal reform or rescheduling is finalized, banks rely on FinCEN’s 2014 guidance and robust BSA/AML programs. (Michigan)

Herring Bank’s role in cannabis banking (Michigan)

Herring Bank is a compliance-first banking partner for Michigan cannabis-related businesses (CRBs). We help you navigate CRA and federal expectations with:

• Business checking & treasury purpose-built for licensed CRBs (ACH, wires, online banking). 
• Cash management with a statewide armored courier network for secure deposits. 
• Onboarding & ongoing monitoring aligned to FinCEN’s 2014 cannabis guidance. 
• Exam-ready recordkeeping mapped to CRA rules, Metrc reconciliation, and municipal requirements. 

Frequently Asked Questions (Michigan)

What taxes apply to adult-use cannabis in Michigan?
Adult-use sales are subject to a 10% marihuana retailers’ excise tax plus 6% state sales tax. Per Treasury, sales tax is calculated on the price including the 10% excise (“tax on tax”).

How are adult-use tax revenues distributed — and what did locals receive for FY2024?
Michigan distributed nearly $100 million to 302 local entities and tribes for FY2024 (paid Feb. 2025), with $58,228.66 per licensed retailer or microbusiness. The state also allocated $116M to the School Aid Fund and $116M to the Michigan Transportation Fund. See the Treasury press release and distribution table (PDF).

Who regulates cannabis businesses in Michigan, and what changed in 2025?
The Cannabis Regulatory Agency (CRA) licenses and enforces statewide. In 2025, the CRA updated its disciplinary guidelines (effective July 1, 2025) and held a public hearing on proposed rules (May 6, 2025).

What inventory system is required?
Michigan uses Metrc statewide for seed-to-sale tracking.

Can my city or township ban or limit cannabis businesses?
Yes. Under MRTMA §6 (MCL 333.27956), municipalities may completely prohibit or limit the number of establishments and set reasonable “time, place, manner” rules.

Can I host a cannabis consumption event or open a lounge?
Yes, with the correct license. For temporary marijuana events, organizers must apply at least 90 days in advance; consumption venues require a designated consumption establishment license. See the CRA reminder.

Are hemp-derived intoxicants (e.g., delta-8) regulated by the CRA?
Yes. HB 4517 (PA 56 of 2021) amended definitions and brought intoxicating hemp products under the marijuana regulatory framework, placing them within CRA oversight.

Can Michigan dispensaries use banks — and what’s the federal status?
Banks serving CRBs follow FinCEN’s 2014 BSA/AML guidance. The SAFER Banking Act (S.2860) remains pending; Michigan’s AG joined a bipartisan coalition urging passage in July 2025.