Southwest Michigan dispensaries welcome thousands for first 4/20 after state wholesale tax takes effect

BERRIEN COUNTY, Mich. -- Is a new wholesale tax putting a damper on the biggest day of the year for Michigan Marijuana dispensaries?

Monday is 4/20, known as the unofficial holiday dedicated to all thing's cannabis culture and consumption, but there's been some major changes since Michigan first legalized recreational cannabis in 2018.

This year, starting on January 1, the state implemented a 24 percent wholesale tax on recreational marijuana on top of the existing 10 percent retail excise tax and 6 percent sales tax.

The 24 percent wholesale is intended to pay for road and bridge repairs across the state and is being challenged in court.

The 'Pot for Potholes' plan jacking total weed taxes up to 40 percent statewide.

Local dispensaries in New Buffalo Township tell ABC57, the first 4/20 under this new wholesale tax didn't dampen any deals they were able to offer to customers.

"It's our Super Bowl," says Mishal Khan, General Manager at King of Budz New Buffalo

"I found my pride and joy," says customer Donnell Jones, as he holds up his shopping bag.

The unofficial holiday drew out large crowds and long lines outside some of southwest Michigan's marijuana dispensaries.

"We had people start lining up at 6 p.m. last night, so we had people spending the night," says General Manager at Urb, Ahmed Nasidi. "When I got here, we had a line around the building."

Large turnout even with 4/20 falling on a Monday this year.

"It gave us the opportunity to open it up for the whole weekend, and it was actually super beneficial," says Khan.

Dispensaries like King of Budz and Urb in New Buffalo Township are known for offering hefty deals and specials to help customers ring in the unofficial holiday, even this year with Michigan's 24 percent wholesale tax on recreational marijuana which directly impacts these retailers.

"It's a wholesale tax, so it's from processor to retailer, so it does end up trickling down, but the customer doesn't see it on their receipt per se, but unfortunately prices are starting to creep up a little bit," Nasidi describes.

"Luckily we have really great relations with all of our vendors, so we've been able to keep getting the product in without it really hurting the pockets of our customers at all," Khan says. "That's always our biggest strive here is to make sure everyone's happy and we're not gouging at anyone's pockets."

It also helps that many of these customers come from out of state.

"I'm on a really fixed income but today I saved up," says Donnell Jones, a customer at King of Budz.

Jones drives in about once a month from Chicago to shop for marijuana in Michigan.

"It's worth the drive, it's more for your money," says Jones.

He would rather pay the inflated gas prices to make the drive over and dodge Illinois' marijuana wholesale tax, where cannabis consumers can pay up to 40 percent in total taxes on their purchases.

"I don't think it's affected us as much as we expected, being that a lot of our customers are from out of state and they are coming from somewhere with even higher of a tax, I think that's what the governor was thinking," Nasidi explains.

So taxes aren't putting a stop to these pot shops' highs this 4/20.

"Not really expecting it to die down around here for sure," Khan says about the lines.

"Definitely a record-setting weekend for us," says Nasidi.