Michigan 24% Wholesale Marijuana Tax Effective January 2026
The Michigan Department of Treasury announces a new 24% wholesale tax on recreational marijuana sales and transfers effective January 1, 2026. The tax applies to the wholesale price of marijuana sold or transferred in Michigan's adult-use market. Revenue from the tax will be deposited into the neighborhood road fund for infrastructure improvements. Treasury has published formal guidance to help cannabis businesses understand compliance requirements.
Maine Millionaire Tax Would Harm Small Business Competitiveness
The Tax Foundation published analysis of Maine's proposed 9.15 percent top income tax rate on earnings above $1 million, which would raise $74 million annually from approximately 2,631 filers. The analysis warns that the two percentage point surtax on high earners would primarily affect pass-through small business owners, as 70 percent of Maine filers with over $1 million in adjusted gross income report pass-through business income.
Recreational Marijuana Taxes Across US States, 2026
The Tax Foundation published its 2026 analysis of recreational marijuana excise tax rates across US states that have legalized cannabis. The report catalogs state-by-state tax structures including weight-based taxes (e.g., Alaska's $50/oz. mature flowers), ad valorem taxes (e.g., Arizona's 16% on retail sales), and THC-content-based taxes (e.g., Connecticut's $0.00625 per mg THC in plants). Tax structures vary significantly, with some states using hybrid approaches combining multiple tax bases.
Revenue Ruling 2026-8: SIFL Aircraft Valuation Formula; Announcement 2026-8: APMA Program Report
The IRS published Rev. Rul. 2026-8 setting forth the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge for the first half of 2026 for valuing non-commercial flights on employer-provided aircraft under 26 CFR 1.61-21(g). The IRS also published Announcement 2026-8, its twenty-seventh annual report on the Advance Pricing and Mutual Agreement (APMA) Program covering calendar year 2025 activities.
Form 8609 Instructions Updated for Tax-Exempt Bond Projects
The IRS has issued updated instructions for Form 8609 (Low-Income Housing Credit) reflecting changes made by the One Big Beautiful Bill Act for tax-exempt bond financed projects after 2025. The updates modify the thresholds for when no housing credit allocation is required when buildings are financed with tax-exempt bonds subject to volume cap under section 146. Specifically, a 50% aggregate basis threshold remains, while a new 25% threshold is added for bonds issued after 2025 meeting additional conditions (at least 5% of aggregate basis financed, building placed in service after 2025). For projects meeting these criteria, filers must leave Line 1a blank on Form 8609.