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HB 4951

Marihuana: taxation; comprehensive road funding act; create. Creates new act. TIE BAR WITH: HB 4183'25, HB 4961'25, HB 4968'25

2025-2026 Regular Session Introduced by Samantha Steckloff

Imposes a 24% wholesale marijuana excise tax to fund road preservation through the Comprehensive Road Funding Fund, mainly via the Neighborhood Road Fund.

assigned PA 23'25 with immediate effect
#highways:constructionandrepair #marihuana:taxation #taxation:other #transportation:other
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WeVote Research Nonpartisan
Bill Summary · HB 4951

Summary — HB 4951 (Comprehensive Road Funding Tax Act / Public Act 23 of 2025)

Status: Enacted (Public Act 23, 2025); approved by Governor 10/07/2025; effective 10/07/2025. Tax provisions take effect January 1, 2026.

Purpose / Overview

HB 4951 (substitute H‑1) creates the "Comprehensive Road Funding Tax Act." It imposes a new wholesale excise tax on certain marijuana transactions and creates the Comprehensive Road Funding Fund. Revenues from the new tax are primarily deposited in the Neighborhood Road Fund to support local road/bridge preservation and maintenance; a small portion is reserved for administration/implementation.

Key provisions

  • New excise tax

    • A 24% excise tax is levied (in addition to other taxes) on the wholesale price of marijuana for:
    • The first sale or transfer from a marijuana establishment to a marijuana retail licensee.
    • Sales by a marijuana retail licensee of marijuana that the licensee cultivated/processed for retail sale (based on aggregate wholesale price of that product).
    • Sales/transfers from a provisioning center to a marijuana retail licensee.
    • Wholesale price definition:
    • For non‑affiliated transactions: the actual invoice price paid by the retail licensee (including tax/fee shown on invoice); discounts/rebates may not reduce wholesale price.
    • For affiliated transactions (and certain in‑house cultivation/processing): the "average wholesale price" published quarterly by the Department of Treasury.

  • Administration and compliance

    • The Department of Treasury administers and enforces the excise under the Revenue Act (1941 PA 122) and may prescribe forms and rules.
    • Persons subject to the tax must file periodic returns and remit tax per Treasury rules.

  • Funds and distribution

    • Creates the Comprehensive Road Funding Fund in the state treasury (Treasurer deposits and invests; Department of Treasury is fund administrator for audits).
    • Revenue deposit schedule:
    • FY 2025–26: $3,000,000 to the Comprehensive Road Funding Fund; remainder to the Neighborhood Road Fund.
    • FY 2026–27 and thereafter: $500,000 (annually, CPI‑adjusted beginning FY 2027–28) to the Comprehensive Road Funding Fund; remainder to the Neighborhood Road Fund.
    • Money in the Comprehensive Road Funding Fund is available, on appropriation, for implementation and administration of the act.

Who is affected

  • Directly: marijuana establishments, provisioning centers, marijuana retail licensees (including microbusinesses).
  • Indirectly: retail consumers (possible retail price changes), local units and road/bridge programs that receive Neighborhood Road Fund distributions.
  • State agencies: Department of Treasury (administers tax), State Treasurer (manages fund).

Fiscal impact and interactions

  • Estimated annual revenue: approximately $420 million (based on current wholesale sales estimates).
  • FY 2025–26 allocation: ~$3.0 million to admin fund; remainder to Neighborhood Road Fund.
  • Subsequent years: ~$500,000 (plus CPI adjustment later) to admin fund; remainder to Neighborhood Road Fund.
  • Note: Introducing a wholesale tax increases wholesale cost and may reduce consumption; that could slightly reduce retail excise tax receipts. Nonpartisan analyses estimated a modest offset (~$2–3 million decline in retail excise tax under central assumptions).

Timing and procedural notes

  • Tax effective date: January 1, 2026 (taxes levied beginning that date).
  • Enactment: introduced Sept 16, 2025; House passed Sept 25, 2025; Senate passed Oct 3, 2025; Governor approved Oct 7, 2025.
  • The bill was tied to other elements of a broader transportation funding package (HB 4183, HB 4961, HB 4968); those measures were enacted as part of the package.

This summary highlights the principal features and likely budgetary effects of HB 4951. For statutory language, administrative procedures, or detailed modeling assumptions, consult the enrolled text and House Fiscal Agency / Senate Fiscal analyses.

Compiled from official sources — confirm details with the bill’s official record.

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