Miranda Richardson / news@whmi.com

C3 Industries is closing up shop at its Webberville site on Feb. 14, laying off more than 60 workers.

The marijuana manufacturing facility is headquartered in Ann Arbor and started operating at the Webberville location in late 2019. The company also has locations in five other states along with Michigan.

The company claims Michigan’s new 24% wholesale tax on marijuana is to blame, which goes into effect in 2026. According to Crain's Detroit Business, C3 Industries CEO Ankur Rungta said the company warned state legislators this would likely be the impact if they passed the wholesale tax.

Meanwhile, Crain's reports that Higher Love Cannabis in the Upper Peninsula has to lay off 30% of their workforce for the same reason. While the new tax has faced significant backlash from Michigan's cannabis industry, the goal of the wholesale tax is to generate around $420 million each year for repairs on roads and bridges.

There's more information on the C3 Industries facility in Webberville linked below.