Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.
In Michigan, cannabis is regulated by the Cannabis Regulatory Agency (CRA). Medical and adult-use cannabis are allowed. Michigan also allows out-of-state medical patients to purchase medical cannabis as long as they have a valid, unexpired medical marijuana registry card or its equivalent.
Michigan uses Metrc as its seed-to-sale state traceability system. Michigan requires medical inventory actions to be reported to the state system in real-time but adult-use inventory actions can be reported to the state system in batches. In Michigan, medical and adult-use cannabis inventory are separated and must be tracked in separate medical and adult-use Metrc accounts. Transfers between medical and adult-use inventory are allowed as long as all transfer requirements are met.
2.5 ounces of marihuana or marihuana equivalent per transaction
The medical patient allotments are tracked directly in Metrc. Dutchie POS will pull the Metrc patient allotment to determine whether a particular sale surpasses the daily or monthly patient purchasing limit.
For purposes of determining usable marihuana equivalency, the following shall be considered equivalent to 1 ounce of usable marihuana:
10% excise tax + 6% state sales tax
Note: Sales tax should be calculated off the goods and the excise tax, requiring a compound tax setup. (Source DOT Tax Bulletin)
6% state sales tax, No excise tax
Trade Samples must be recorded and tracked directly in METRC as the adjustment reason notes must include the employee’s name, Metrc ID, and quantity of product received.
Trade Sample Limits:
Trade Samples can be distributed/sampled out to employees but will count towards their sample limit
Internal Product Samples must be recorded and tracked directly in METRC as adjustment reason notes must include the employee’s name, Metrc ID, and quantity of product received
Internal Product Sample limits:
Note: Trade Sample / Internal Product sample limits are not exclusive. A dispensary employee may receive up to the indicated limit within a 30 day period, regardless of the type of distribution.
Prior to starting delivery services, a retailer must have a Delivery Plan approved by the CRA. There is no independent delivery license in Michigan; only retailers can deliver cannabis to customers.
The maximum amount of cannabis allowed in a delivery vehicle is $5,000. However, the maximum value of cannabis carried in a delivery vehicle for which a delivery order was not already received and processed by the retailer prior to the delivery employee departing may not exceed $3,000.
The amount of cannabis a vehicle may have is further restricted by amount. In making deliveries, the maximum amount of cannabis that can be transported at one time is 15 ounces of marijuana or 60 grams of marijuana concentrate.
A delivery employee may not leave a retailer with cannabis for delivery without having at least 1 delivery order that has already been received and processed. Once on the road, the delivery driver may deliver additional orders that are received and processed after they initially departed. However, if a delivery emp;loyee does not have any delivery request for a 30-minute period, they must return back to the retailer.
Retailers may only deliver to residential addresses or designated consumption establishments. Deliveries are permitted in municipalities that have opted-out of cannabis as the CRA considers the sale as originating from the retailer location.
All vehicles must have GPS.
Delivery employees can only deliver on behalf of one retailer.
Retailers must keep a detailed delivery log and update it after each sale.
The CRA compiles best practices guidance as well as bulletins
In May 2023, the CRA released a number of proposed rule changes. There is not yet a date when these may go into effect but the CRA is collecting comments on them.
