Dear Colleagues,
Thank you for helping to drive hundreds of calls and emails to the Governor and legislators over the last few days opposing the proposed 50% tax hike on hemp and cannabis products. The legislature failed to meet its deadlines to pass a tax bill during the regular legislative session, but a special session is imminent, and the proposal to increase the cannabis tax is still on the table.
Thanks to your outreach, Senate Minority Leader Mark Johnson
stated this morning that Senate Republicans are opposed to any cannabis tax increase.
But Governor Walz has continued to
publicly defend his push for a 15% cannabis tax, dismissing concerns that it will harm small businesses and drive consumers to the illicit market. In his own words:
“Because the evidence doesn’t show that [a black market] happens,”
— Governor Walz, FOX 9 News
The Governor is preparing to make a renewed push for the cannabis tax increase during the special session—this time with a "sunset" in 2027 or 2028.
Let’s be clear: that is not a compromise or a fix.
We know the evidence from other states proves the Governor is wrong. Just look at what’s happened in California, New York, and Illinois:
- High taxes fueled larger illicit markets—not smaller ones.
- Small businesses closed while the illicit market expanded.
- Tax rollbacks came too late to reverse the damage.
What We Need You to Do—TODAY
- Call and Email the Governor and Legislative Leaders AGAIN
- Make it clear: NO tax hike, not even with a sunset.
- Mobilize Your Customers and Partners
- Let them know what’s happening and urge them to contact the Governor, the chairs of the legislative tax committees, and their own legislators.
- Share our Action Network letter campaign with your customers—post the QR code at the register, include the link in your emails and social media, and add it to your receipts or signage to make it easy for your customers to take action too.
- Post on Social Media
- Use your voice to raise awareness and drive immediate action.
Key Contacts (in order of priority)
Talking Points: Why the Sunset Proposal Is Still Bad Policy
- It hurts small, local businesses before the market even opens: Minnesota’s cannabis business licenses haven’t even been issued yet—taxing the market now forces small operators to compete on price before they can even get to market.
- It fuels the illicit market at the expense of legal operators and consumer safety: Legal products will cost more, making it harder for Minnesotans to choose safe, tested, legal cannabis.
- It contradicts Minnesota’s equity and local ownership goals: High taxes favor large, out-of-state operators and undermine small, local businesses trying to enter the market.
- It gives tribal operators an unfair advantage: Under the leaked compact, tribal businesses may be exempt from the tax, creating an uneven playing field for everyone else.
- It locks in consumer loyalty to the illicit market: Once consumers get used to cheaper, unregulated products, they’re unlikely to return to legal channels, even after the tax sunsets.
- It’s happening behind closed doors: We need transparent, inclusive policymaking—not surprise tax hikes negotiated without public input.
If you have questions or need assistance, please contact Leili at leili@bluntstrategies.com. Thank you for your continued activism.
