Higher Love Cannabis Co. Closes Five Michigan Dispensaries, Citing 24% Wholesale Tax

Higher Love Cannabis Co. has closed five of its nine Michigan dispensaries, attributing the decision to the state's 24% wholesale cannabis tax. The closures affect locations in Crystal Falls, Escanaba, Houghton, Munising, and Ontonagon, while four other stores remain open. The company says the tax, combined with other levies and market pressures, has made operations in smaller communities unviable.

Higher Love Cannabis Co. announced the suspension of operations at five of its nine Michigan dispensaries, with August 9 marking the last day of business at its Upper Peninsula retail locations in Crystal Falls, Escanaba, Houghton, Munising, and Ontonagon.

The company directly tied the closures to Michigan's 24% wholesale tax on cannabis products, describing it as "another substantial cost in a market already subject to a 10% retail excise tax and 6% sales tax."

Higher Love emphasized that while the taxes apply at different supply chain stages and do not combine into a single rate, their collective impact has created an unsustainable operating environment, particularly for compliant businesses serving smaller and rural communities.

The company's retail businesses in Ironwood, Marquette, Menominee, and Norway will remain open. Higher Love noted that the decision comes amid broader industry pressures, including oversupply, price compression, and declining revenue, which have already forced numerous businesses to consolidate or eliminate jobs.

A bill proposed in Michigan in July seeks to repeal the wholesale cannabis tax, but Higher Love did not indicate whether it would restart operations at the closed dispensaries if the bill becomes law.