MRTMA & the 2018 Vote — 56% Statewide, 68% in Detroit

Legal Disclaimer: This information reflects Detroit cannabis law as of June 2026 and is for educational purposes only. It is not legal advice. Laws and regulations change — always verify current rules with the Michigan Cannabis Regulatory Agency or a qualified attorney. Cannabis remains illegal under federal law.

Last verified: April 2026

The Voter Initiative

On November 6, 2018, Michigan voters approved Proposal 1, the Michigan Regulation and Taxation of Marihuana Act (MRTMA), 56% to 44%. Detroit voted yes by exactly 68% — substantially wider than the state as a whole. MRTMA made Michigan the first Midwestern state to legalize adult-use cannabis, and the tenth state in the country.

Council President Pro Tem James Tate would invoke that 68% Detroit yes-vote figure for years to justify the city’s slow, equity-first rollout. The voter mandate was both the legal foundation for legalization and the political foundation for the equity framework that Tate authored.

What MRTMA Did

MRTMA (codified at MCL 333.27951 et seq.) created the framework for adult-use cannabis in Michigan:

Legalized adult-use cannabis for adults 21 and older statewide
Established the Marijuana Regulatory Agency (later renamed the Cannabis Regulatory Agency / CRA in 2022) within the Department of Licensing and Regulatory Affairs
Set personal-possession limits: up to 2.5 oz public, 10 oz home (locked above 2.5 oz), 12 plants per residence (household cap), 2.5 oz gifting to another adult 21+
Established the commercial license categories: cultivator (Class A, B, C grow tiers), processor, secure transporter, retailer, microbusiness, safety compliance facility, marijuana event organizer, and marijuana event temporary license
Set the tax structure: 10% retail excise tax + 6% sales tax
Allocated tax revenue to schools, transportation infrastructure, and adult-use municipalities + counties
Authorized municipalities to opt out of permitting cannabis establishments under MCL 333.27956

Detroit’s Late Rollout

Statewide adult-use sales began on December 1, 2019. Detroit opted out, declining to license adult-use retailers for more than three years after the voter mandate. The opt-out was authorized by MCL 333.27956. Detroit’s rationale (publicly articulated by Tate) was equity: the city wanted time to design a licensing framework that would prioritize Detroit residents and prevent the legal market from being captured by capital-rich out-of-state operators.

The first Detroit ordinance (November 24, 2020) created the Detroit Legacy preference. The second (April 5, 2022) restructured equity into two tracks after Judge Friedman struck down the first. The first 33 Detroit licenses were awarded December 22, 2022 — more than three years after statewide adult-use sales began.

The Local-Control Provision (MCL 333.27956)

MRTMA’s Section 6, codified at MCL 333.27956, allows a municipality to:

“Completely prohibit or limit the number of marihuana establishments” within its boundaries
Adopt “ordinances governing the time, place, and manner” of operation

That delegation of local-control power is what allowed Detroit to delay adult-use licensing by more than three years — and what created the legal vacuum the equity ordinance was designed to fill. By 2026, many Michigan municipalities continue to opt out of allowing cannabis establishments; the patchwork of opt-out and opt-in jurisdictions is one of the defining features of Michigan’s adult-use market.

The CRA — What It Does

The Michigan Cannabis Regulatory Agency, formerly the Marijuana Regulatory Agency (renamed in 2022), is the sole licensing authority for commercial cannabis businesses statewide. The CRA enforces:

Licensing standards for cultivators, processors, retailers, microbusinesses, secure transporters, safety compliance facilities, and event organizers
Testing standards for cannabis products
Packaging and labeling requirements
Advertising rules
The Metrc seed-to-sale tracking system

The CRA’s September 2025 statistical report shows 851 licensed adult-use retailers and 107 licensed medical provisioning centers statewide, with 40,446 registered cannabis employees. Michigan has surpassed $12.5 billion in cumulative adult-use sales since recreational sales began in December 2019.

The Tax Structure

MRTMA’s original tax structure was relatively simple:

10% retail excise tax on adult-use cannabis sales
6% Michigan sales tax on adult-use cannabis sales
Effective 16% combined rate at retail

The 2025 legislation added a 24% wholesale excise tax effective January 1, 2026, on top of the existing structure. The Michigan Cannabis Industry Association lawsuit alleges the wholesale tax legislation unconstitutionally amended the voter-initiated MRTMA. See the 24% Wholesale Tax page.

The Caregiver Holdover

Michigan’s caregiver system — a holdover from the 2008 Michigan Medical Marihuana Act — allows registered caregivers to grow up to 72 medical plants for up to five patients. Caregivers cannot legally sell into the licensed adult-use system, but the gray market they sustain remains the Michigan industry’s most-discussed competitive threat. CRA reforms in 2021 narrowed caregiver authority, and the licensed market has gained share, but Detroit dispensary owners still complain that unlicensed caregiver-grown product drives prices below cost.