The Case of Cannarbor -v- The Michigan Dept of Treasury

The Case of Cannarbor -v- The Michigan Dept of Treasury

May 12, 2025 | Your Tax Dollars At Work

Nice Try…

This case centered on the disagreement between Cannarbor, Inc., a medical marijuana provisioning center operating in Michigan, and the Michigan Department of Treasury concerning the obligation to collect sales tax on the retail sale of medical marijuana. Cannarbor contended that its sales should be exempt from sales tax, pointing to a 2011 communication from a Deputy Treasurer which indicated that transactions between registered caregivers and patients were not considered taxable sales. Conversely, the Department of Treasury maintained that the state’s General Sales Tax Act (GSTA), alongside the Medical Marihuana Act (MMMA) and the more recent Medical Marihuana Facilities Licensing Act (MMFLA), clearly established that retail sales by licensed provisioning centers were subject to sales tax, a distinction from the non-taxable services offered by individual primary caregivers.

The Michigan Court of Claims ruled in favor of the Department of Treasury, a decision that was subsequently affirmed upon appeal. The appellate court underscored that the MMFLA, enacted after the issuance of the 2011 letter, drew a distinct line between primary caregivers, who offer non-taxable support to qualifying patients, and licensed provisioning centers, which conduct taxable retail transactions. The court highlighted the Legislature’s deliberate omission of a sales tax exemption for provisioning centers, in contrast to the explicit exemption provided to primary caregivers for the reimbursement of their costs. Furthermore, the court dismissed Cannarbor’s assertion that its activities were equivalent to those of primary caregivers, emphasizing that the legislative framework itself differentiated these entities.

Finally, the court rejected Cannarbor’s arguments regarding detrimental reliance on the 2011 letter and alleged violations of equal protection and the principle of uniform taxation. The court reasoned that the 2011 letter, predating the MMFLA, was not applicable to the operations of licensed provisioning centers established under the new regulatory framework. Moreover, the court concluded that provisioning centers and primary caregivers were not similarly situated for taxation purposes, as the Legislature had a rational basis for establishing different tax treatments for these distinct categories of actors within the medical marijuana system.

Read the COA 368901 CANNARBOR INC V DEPARTMENT OF TREASURY Opinion

Komorn Law

TIP: When you’re in trouble – Better Call Komorn

248-357-2550

Komorn Law
Areas of Service

We fight for our clients throughout the State of Michigan and Northern Ohio.

Here are some court contacts we frequently handle cases.

Oakland County

If you are facing any legal charges in Oakland County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Macomb County

If you are facing any legal charges in Macomb County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Wayne County

If you are facing any legal charges in Wayne County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information for the Third Circuit Court (Wayne County):

  • Telephone Number (Civil/Family): (313) 224-5510
  • Telephone Number (Criminal): (313) 224-5261 or (313) 224-2503
  • Address (Civil/Family): 2 Woodward Avenue, Detroit, MI 48226
  • Address (Criminal): 1441 St. Antoine, Detroit, MI 48226
  • Website: https://www.3rdcc.org/

Kent County

If you are facing any legal charges in Kent County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

  • Telephone Number: (616) 632-5220
  • Address: 180 Ottawa Avenue NW, Grand Rapids, MI 49503
  • Website: Kent County

Traverse County

If you are facing any legal charges in Traverse County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information for the 13th Circuit Court (which includes Traverse County):

Monroe County

If you are facing any legal charges in Monroe County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Legal Tip – Driving High on Cannabis in Michigan

Legal Tip – Driving High on Cannabis in Michigan

May 9, 2025 | Driving, DUI

Driving under the influence of cannabis is illegal and carries serious consequences in Michigan.

We have fought and won many cases from the District Courts, Circuit Courts, Court of Appeals and the Supreme Court through out the State of Michigan. We have also fought and influenced laws and regulations regarding cannabis over the past 15 years+.

Go ahead Google Us – Search Komorn Law

If you are stopped and suspected of driving high:

  • Remain Calm and Polite: Cooperate with the officer’s requests (e.g., providing your license and registration).
  • You Have the Right to Remain Silent: You are not obligated to answer questions beyond basic identification. Politely state that you wish to remain silent.
  • Field Sobriety Tests (FSTs) are Voluntary: You can refuse to participate in roadside field sobriety tests. This refusal cannot be used against you in court, although the initial stop and observations can still be factors.
  • Implied Consent: Michigan has an implied consent law, meaning by driving on public roads, you’ve consented to chemical tests (blood, breath, or urine) if lawfully arrested for a suspected OWI. Refusal to submit to a chemical test after a lawful arrest can lead to immediate driver’s license suspension, even if you are not ultimately convicted of OWI.
  • Document Everything: If possible, note the time, location, officers involved, and any details about the stop.
  • If Arrested, Do Not Resist: Comply with the arrest procedures. If you do resist you need to call us ASAP.

If you need to hire one of the best legal firms in Michigan

If you are arrested for driving under the influence of cannabis, it is crucial to seek experienced legal counsel as soon as possible.

Call Komorn Law to understand your rights and options and to build a strong defense. We specialize in Michigan marijuana laws and can provide the expert representation you need.

When you’re in trouble
Better Call Komorn

248-357-2550

Komorn Law
Areas of Service

We fight for our clients throughout the State of Michigan and Northern Ohio.

Here are some court contacts we frequently handle cases.

Oakland County

If you are facing any legal charges in Oakland County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Macomb County

If you are facing any legal charges in Macomb County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

Wayne County

If you are facing any legal charges in Wayne County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information for the Third Circuit Court (Wayne County):

  • Telephone Number (Civil/Family): (313) 224-5510
  • Telephone Number (Criminal): (313) 224-5261 or (313) 224-2503
  • Address (Civil/Family): 2 Woodward Avenue, Detroit, MI 48226
  • Address (Criminal): 1441 St. Antoine, Detroit, MI 48226
  • Website: https://www.3rdcc.org/

Kent County

If you are facing any legal charges in Kent County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

  • Telephone Number: (616) 632-5220
  • Address: 180 Ottawa Avenue NW, Grand Rapids, MI 49503
  • Website: Kent County

Traverse County

If you are facing any legal charges in Traverse County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information for the 13th Circuit Court (which includes Traverse County):

Monroe County

If you are facing any legal charges in Monroe County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:

And more

Criminal Sexual Conduct (CSC) – Michigan

Criminal Sexual Conduct (CSC) – Michigan

Apr 1, 2025 | Michigan Laws

Criminal Sexual Conduct (CSC) in Michigan: Definitions, Penalties, and Legal References.

Criminal Sexual Conduct (CSC) is a set of laws in Michigan that define and penalize various forms of sexual offenses.

These laws are categorized into four degrees, with each degree reflecting the severity of the crime.

The Michigan Penal Code specifies these offenses, found under the Michigan Compiled Laws (MCL), and each degree has different elements and penalties.

First-Degree Criminal Sexual Conduct (MCL 750.520b)

First-degree CSC is the most severe form of sexual assault. It involves sexual penetration (oral, anal, or vaginal) and occurs under specific circumstances, such as:

  • The victim is under 13 years of age.
  • The victim is between 13 and 16, and the offender is in a position of authority (e.g., teacher, coach).
  • The assault involves the use of a weapon, physical injury, or threats.

Penalties: A person convicted of first-degree CSC faces a maximum penalty of life in prison. If the victim is under 13, the mandatory minimum is 25 years, with possible lifetime electronic monitoring.

First-degree CSC – MCL 750.520b

Second-Degree Criminal Sexual Conduct (MCL 750.520c)

Second-degree CSC involves sexual contact (fondling or touching for sexual purposes) rather than penetration. The circumstances are similar to first-degree but without penetration:

  • The victim is under 13 years old.
  • The victim is between 13 and 16, and the offender is a family member or in a position of authority.
  • The offender uses force or coercion.

Penalties: A conviction for second-degree CSC can result in up to 15 years in prison, with lifetime electronic monitoring if the victim is under 13.

Second-degree CSC – MCL 750.520c

Third-Degree Criminal Sexual Conduct (MCL 750.520d)

Third-degree CSC involves sexual penetration under less severe circumstances than first-degree, such as:

  • The victim is between 13 and 16 years old.
  • The act was achieved through force, coercion, or the victim’s inability to give consent (e.g., due to intoxication or mental incapacity).

Penalties: A person convicted of third-degree CSC faces up to 15 years in prison.

Third-degree CSC – MCL 750.520d

Attorney Michael Komorn

Attorney Michael Komorn

State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

Fourth-Degree Criminal Sexual Conduct (MCL 750.520e)

Fourth-degree CSC is the least severe and involves sexual contact without penetration. It can include unwanted touching and occurs under circumstances like:

  • The victim is between 13 and 16, and the offender is at least five years older.
  • The offender uses force or coercion.

Penalties: A conviction for fourth-degree CSC can result in up to two years in prison and a fine of up to $500.

Fourth-degree CSC – MCL 750.520e

Additional Information

Criminal sexual conduct convictions can lead to mandatory registration as a sex offender, especially if the victim is a minor. Michigan takes these offenses seriously, and those convicted can face lifelong consequences, including prison time and sex offender registration.

For more detailed definitions (MCL 750.520a) information on the statutes, you can review Michigan’s laws through the Michigan Legislature website.

Second or subsequent offense; penalty

  • In the event that an individual is convicted of a second or subsequent offense under sections 520b, 520c, or 520d, the resulting sentence for these offenses shall include a mandatory minimum of no less than 5 years.
  • For the purposes of this section, an offense is deemed a second or subsequent offense if, before the conviction of the second or subsequent offense, the individual has previously been convicted under section 520b, 520c, or 520d, or any comparable statute at the federal or state level for a criminal sexual offense, which includes but is not limited to rape, carnal knowledge, indecent liberties, gross indecency, or attempts to perpetrate such offenses.

Second or subsequent offense; penalty. MCL 750.520f

Criminal Sexual Conduct Articles

Criminal Sexual Conduct (CSC) in Michigan

Criminal Sexual Conduct (CSC) in Michigan

Criminal Sexual Conduct (CSC)Criminal sexual conduct (CSC) in Michigan refers to a range of sexual offenses that vary in severity based on factors like the nature of the act, the age of the victim, and whether force or coercion was involved.Michigan law categorizes...

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Note: This article provides a general overview and does not substitute for legal advice. Anyone charged with a CSC offense should consult an attorney for specific legal guidance.

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Update on Michigan’s Sick Time Act (Small Business Compliance)

Update on Michigan’s Sick Time Act (Small Business Compliance)

Mar 17, 2025 | Know Your Rights, Michigan Laws

Small Business Compliance

  • Accrual Method: Employees accrue 1 hour of paid sick time for
    every 30 hours worked, and unused paid sick time rolls over up
    to 72 hours, or 40 for a small business. Employers may limit the
    use of earned sick time to 72 hours, or 40 for a small business,
    in the 12-month period.
  • New Hire Waiting Period: If using the accrual method,
    employers may have a policy for new employees hired on or
    after Feb. 21, 2025, requiring these employees to wait up to 120
    days before using accrued sick time. Employees accrue earned
    sick time during this waiting period. If frontloading, hours are
    available for immediate use.
  • Small Business Compliance: Small businesses have until Oct.
    1, 2025, to comply with ESTA requirements. Small business is
    defined as an employer having 10 or fewer employees.

How to determine if an employer is a “small business” under the ESTA?

  • All employees of the employer within the U.S. or its territories are included for purposes of the total number of employees.
  • An employer is considered a “small business” if it employs 10 or fewer
    employees. This includes full-time, part-time, and temporary employees
    including those provided through a temporary service or staffing agency or similar entity.
  • Once an employer employs 11 or more employees for 20 or more work weeks in the current or prior calendar year, the employer cannot be a “small business” again until it meets the requirements above.

When does an eligible employee begin to accrue earned sick time?

Small businesses will submit and obey Oct. 1, 2025, or upon commencement of the employee’s employment, whichever is later.

What notice must the employer provide to employees?

Sec. 8. (1) An employer subject to this act shall provide written notice to each employee at the time of hiring or not later than 30 days the effective date of the 2025 amendatory act that amended this section, whichever is later, including, but not limited to, all of the following:

  • The amount of earned sick time required to be provided to an employee under this act.
  • The employer’s choice of how to calculate a year as that term is defined under section 3.
  • The terms under which earned sick time may be used.
  • That retaliatory personnel action taken by the employer against an employee for requesting or using earned sick time for which the employee is eligible is prohibited.
  • The employee’s right to file a complaint with the department for any violation of this act.
  • The notice required under subsection (1) shall be in English, Spanish, and any language that
    is the first language spoken by at least 10% of the employer’s workforce, if the department has translated the notice into that language.

This act does not require an employer to:

This act does not require an employer that provides paid earned sick time at the beginning of a year as described in subsections (2) to (4) to do any of the following:
  • Allow an employee to carry over any unused earned sick time from 1 year to the next year.
  • Calculate and track an employee’s accrual of paid earned sick time.
  • Pay the employee the value of the employee’s unused accrued paid earned sick time at the end of the year in which the earned sick time was accrued.

Read the February 2025 Update Here (PDF)

The Law: EARNED SICK TIME ACT (EXCERPT) Act 338 of 2018

If you are charged with a crime

If you are charged with a crime you’re part of the State of Michigan family now. Your right to remain silent and request a lawyer exists as of the writing of this article.

So call us – Because you don’t want to be a part of that family.

Komorn Law (248) 357-2550

Other Posts

Sometimes our posts provide a general overview of things with opinionated sarcasm and dry humor by the writer to lighten the same old same old of other law sites.  It does not substitute for legal advice. Anyone charged with a criminal offense should consult an attorney for specific legal guidance. BTW. True Fact: When Michael Komorn fights the justice system there is only one focus. You and your rights.

Attorney Michael Komorn

Attorney Michael Komorn

State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

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What Are Your Rights Before And After Arrest?

What Are Your Rights Before And After Arrest?

Mar 3, 2025 | Know Your Rights, Michigan Laws, Your Rights

What are your rights before and after arrest?

Generally, police require a search warrant to lawfully enter any private premises or to search electronic devices such as your phone or computer.

If the police do not possess a search warrant, you are under no obligation to permit them entry into your home, garage, vehicle, or any other private space that is not accessible to the public.

Conversely, if they present a warrant, you should comply by allowing them to search the specific items or areas detailed within the warrant, as the scope of their search is typically confined to those terms.

Anything you say will be twisted into their narrative and used against you

While the police are conducting their search, you can ask if you can watch them as they complete it. That is… if you’re not facedown on the floor and handcuffed.

You can also ask if you can call a lawyer even if you’re facedown in the dirt and handcuffed.

They probably will not allow it so remain silent and assert your 5th amendment. Anything you say will be twisted into their narrative and used against you.

Before they begin. Police should give you a list of everything that they take as evidence when they complete their search.

They should also leave a copy of the warrant or other document that allowed the search.

Of Course There’s Exceptions

Anything you say will be twisted into their narrative and used against you

The Fifth Amendment

The Fifth Amendment ratified in 1791 is supposed to protect citizens from government overreach.

Protections

  • Due process: Requires notice and a hearing before taking away life, liberty, or property
  • Self-incrimination: Prevents being forced to testify against oneself in a criminal case
  • Double jeopardy: Prevents being tried twice for the same crime
    Grand jury: Requires an indictment by a grand jury before being tried for a serious crime
  • Takings: Requires just compensation when the government takes private property for public use

Other protections

  • Equal protection before the law
  • Financial compensation when the government takes private property

The Fifth Amendment draws its roots from English common law, with the grand jury clause tracing back to the Magna Carta, a historic document that safeguarded individuals against unjust prosecution by the English monarchy.

Miranda Rights

When you are arrested by the police, it is their legal obligation to inform you of your Miranda rights.

The most common version of Miranda rights is:

You have the right to remain silent. Anything you say can and will be used against you in a court of law. You have the right to an attorney. If you cannot afford an attorney, one will be provided for you.

You may encounter an alternative perspective, yet it must uphold the same rights.

You are not obligated to answer questions following your arrest, as both police and prosecutors cannot compel you to do so, and this right to remain silent is protected under the Fifth Amendment of the U.S. Constitution.

You are entitled to have legal representation with you when communicating with law enforcement or the prosecutor. When you are sitting in the “interview room”

This includes any oral or written statements you make.

Your right to a lawyer is guaranteed by the Sixth Amendment to the U.S. Constitution.

Michigan law guarantees that anyone suspected of committing a crime who wants a lawyer can get one, regardless of their ability to pay.

You must clearly and specifically ask for a lawyer to have one present during police questioning.

If you are charged with a crime

If you are charged with a crime, your right to a lawyer continues throughout the process. You find out what crime(s) you are charged with at an arraignment. At this point you become the defendant in the case. You’re part of the State of Michigan  family now.

So call us because you don’t want to be a part of that family.

Komorn Law (248) 357-2550

Other Posts

Sometimes our posts provide a general overview of things with opinionated sarcasm and dry humor by the writer to lighten the same old same old of other law sites.  It does not substitute for legal advice. Anyone charged with a criminal offense should consult an attorney for specific legal guidance. BTW. True Fact: When Michael Komorn fights the justice system there is only one focus. You and your rights.

Attorney Michael Komorn

Attorney Michael Komorn

State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

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Nice Try...This case centered on the disagreement between Cannarbor, Inc., a medical marijuana provisioning center operating in Michigan, and the Michigan Department of Treasury concerning the obligation to collect sales tax on the retail sale of medical marijuana....

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