Glossary
Wholesale tax (Michigan)
Michigan's 24% tax on wholesale cannabis transfers from January 1, 2026. On a retailer's books it belongs inside purchase cost (inventory), never as a retail tax line; the wholesaler remains liable.
Why it matters for reconciliation: booking this tax as a retail line makes the cost of goods look lower and the retail tax look higher than they are. Placing it inside purchase cost keeps landed cost, margins and cost of goods sold consistent.
Example: a retailer receives a package from a Michigan wholesaler and the invoice shows the 24% wholesale tax. The tax goes into the inventory cost of that package. When the package sells, the cost of goods sold reflects it, and the retail tax line on the receipt shows only taxes charged to the customer.
Where this comes up on budally.com
- Metrc for dispensaries: what it records, and how a store reconciles against it
- Metrc in Michigan: what a dispensary has to report, reconcile and keep — the operations view
- Metrc reconciliation for dispensaries: the daily, weekly and 30-day procedure
- Best cannabis delivery software 2026: which tool fits which delivery operator
- Best cannabis POS software 2026: which system fits which operator, and how we compared them
- BLAZE alternatives 2026: what to weigh before you leave BLAZE, and who to look at
- Cova POS alternatives 2026: what Cova does well, why operators look elsewhere, and who to compare
- Flowhub alternatives 2026: what to weigh before you leave Flowhub, and who to look at
Related terms
- Cannabis excise tax
A state tax on cannabis retail sales, separate from sales or gross receipts tax. Rates and bases vary: California 15% on retail; New Mexico 14% from July 1, 2026 rising to 18% by 2030; Michigan 10% retail excise plus, from January 2026, a 24% wholesale tax.
- Landed cost
The full cost of a package into inventory: invoice unit cost at accepted quantity, freight, and any wholesale tax booked into cost (Michigan 24%). The floor for any price proposal.