Recreational marijuana use has been legal in California for nearly eight years. And while the Golden State has a bit of a stoner reputation, another state has surpassed it to become the largest cannabis market in the country.

LA Times enterprise reporter Connor Sheets joined Lisa McRee on “LA Times Today” to discuss how Michigan rose to the top of the weed marketplace.

Sheets explained that California’s overall sales are higher than other states because of its size, but Michigan is outperforming its sales volume.

Michigan legalized recreational marijuana use in 2018, two years after California.

“We’re seeing it going back to January 2023. That’s when Michigan surpassed California as far as sales by volume, or by amount of cannabis sold... And it’s only continuing to grow, according to experts I talked to,” Sheets said.

There are several reasons that Michigan’s weed market is thriving, Sheets explained.

“Michigan is in the middle of the Midwest, which is an area where several states still don’t even have medical marijuana legalized. You’ve got a state that’s selling recreational cannabis. You can buy 2.5oz at a time, which is significantly more than a lot of places. And people are coming in from out of state and taking it back home. Whether that’s legal or not, it’s not legal... They’re seeing huge percentages of their sales going out, going to people from out of state,” he elaborated.

Sheets visited dispensaries such as Lume and Pleasantrees in Michigan, getting an inside look at their “huge” grow rooms. He talked about why California’s weed market is faltering.

“According to people in the industry, the taxes here are significantly higher than almost anywhere else for the cannabis industry, which suppresses the ability of these companies to thrive and makes prices way more than in places like Michigan. There’s illegal dispensaries across the state, especially in LA County and San Francisco County. Places like that are really undercutting the industry. And all the states near us [have legalized cannabis]. So we can’t have that illegal selling-across-the-border industry,” Sheets explained.

Watch the full interview above.

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