Landmark Skybox

Breeze-Courier | Taylorville, IL
The Weather Network
Advanced Search
search sponsored by



home : news : state news free June 4, 2020

2/25/2020 12:26:00 PM
1st month legal pot sales generates $7.3M in taxes
An additional $3.1 million comes from retail sales taxes on adult-use cannabis
Peter Hancock
Capitol News Illinois

SPRINGFIELD – The Illinois Department of Revenue reported Monday that the first month of legalized adult-use cannabis sales in the state generated $7.3 million in cannabis tax revenue for the state, plus another $3.1 million in retail sales taxes that are shared between the state and local governments.

“Today marks another milestone in the successful launch of Illinois’ legal cannabis industry,” Toi Hutchinson, a senior advisor on cannabis policy to Gov. JB Pritzker, said in a statement.

Last year, at Pritzker’s urging, lawmakers passed a bill legalizing the production and sale of adult-use recreational marijuana. The law took effect Jan. 1.

Under that law, marijuana cultivators pay a 7-percent privilege tax on their sales to dispensaries. Retail sales, in turn, are subject to retail sales taxes as well as a special cannabis tax that ranges from 10 to 25 percent, depending on the type of product being sold and its THC content.

Those taxes are in addition to the retail sales taxes levied by the state and the local governments where the sales occur, but they do not apply to products that are taxed under the state’s medical marijuana program.

Pritzker’s budget office had estimated that marijuana sales would generate $28 million in the final half of the current fiscal year, which ends June 30. The Department of Revenue said Monday’s report showed the state is on pace to surpass that estimate.

The state’s share of the revenue is divided among several funds:

 35 percent goes to the state general fund.

25 percent goes into a special fund for community development projects in areas with high arrest and poverty rates that were disproportionately affected by the “war on drugs.”

 20 percent goes to the Department of Human Services for substance abuse and prevention programs and mental health.

10 percent is put into the Budget Stabilization Fund to pay down the state’s backlog of unpaid bills.

8 percent goes to local governments to support crime prevention, training and interdiction efforts.

 And 2 percent is used to fund public education campaigns and to support data collection and analysis of the public health impacts of legalizing recreational marijuana.

“Our goal has been to build the nation’s most socially equitable program that includes new opportunities for the communities most harmed by the failed war on drugs,” Hutchinson said in her statement.

“Revenue raised in this first month will soon begin flowing back into those communities to begin repairing the damage done by the failed policies of the past and creating new opportunities for those who have been left behind for far too long.”

Article Comment Submission Form
Please feel free to submit your comments.

If you are looking for the SPEAK OUT submission form, you can find it by clicking here: Speak Out Form

Article comments are not posted immediately to the Web site. Each submission must be approved by the Web site editor, who may edit content for appropriateness. There may be a delay of 24-48 hours for any submission while the web site editor reviews and approves it.

NOTE: All information on this form is required. Your telephone number and email address will not be displayed or shared.
Submit an Article Comment
First Name:
Last Name:
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.

Trinity Dodge Fixed
NewsWebPagesOpinionPeopleObituariesAg & BusinessSportsContact UsLife
Subscriptions | Username & Password Reminder | Change Password | Life

Breeze-Courier & Printing | 212 S Main St. Taylorville, IL 62568 | (217) 824-2233 |

© Copyright 2014 Breeze-Courier & Printing. All Rights Reserved.
Original content may not be reprinted or distributed without the written permission of Breeze-Courier & Printing.

Software © 1998-2020 1up! Software, All Rights Reserved