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State legislators had entertained the idea of passing legislation to legalize pot in Michigan.
But the lawmakers, who had until Tuesday to take up the matter, took a pass, clearing the way for Michigan voters will decide on the ballot measure at the Nov. 6 election.
Analysts estimate sales in Michigan could exceed nearly $1 billion a year, WDIV reports.
The proposal calls for legalizing possession and sale of up to 2.5 ounces of marijuana for recreational use. It would be taxed at 10 percent, plus the existing 6 percent sales tax.