Rize navigates Michigan's 24% wholesale tax through supplier cost-sharing

Operator adopts cost-sharing model as Michigan's new 24% wholesale tax pressures margins amid softening sales.

FILE — harvest · My 420 Tours / CC BY-SA 4.0

Rize is using supplier cost-sharing arrangements to manage Michigan's newly imposed 24% wholesale cannabis tax, according to MMJDaily. The strategy reflects how operators are adapting to the tax, which took effect in early August and adds material pressure to an already-tightening market.

The cost-sharing approach comes as Michigan cannabis faces headwinds. Related coverage shows sales fell 5% in July while neighboring Ohio surged 22%, and earlier reports documented record-low prices amid intensifying competition. Rize's tactic suggests operators may be negotiating margin relief with suppliers rather than absorbing the full tax impact.

Watch whether other Michigan operators adopt similar cost-sharing models, and whether the strategy proves sustainable—or whether further regulatory pressure (a lawmaker has already sought to repeal the 24% tax) becomes necessary to stabilize the market.