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llinois’ Recreational Marijuana Sales Brought $10 Million in Tax Revenue in January

February 25, 2020by Ally Marotti, Chicago Tribune (TNS)
On the second day of legal recreational cannabis sales, people line up outside the Midway Dispensary in Chicago, on Jan. 2, 2020. (Antonio Perez/Chicago Tribune/TNS)

CHICAGO — Recreational marijuana sales in Illinois generated more than $10 million in tax revenue in January, according to the Illinois Department of Revenue.

The state collects sales tax and a cannabis excise tax on recreational marijuana sales. January sales generated more than $7.3 million in cannabis tax revenue, and more than $3.1 million in sales tax revenue.

The sale of recreational marijuana started Jan. 1 in Illinois and has continued to draw throngs of people to dispensaries. Customers spent more than $39.2 million on legal weed during the first month of sales.

Medical marijuana is not subjected to the marijuana tax, which varies by product and by the content of psychoactive compound THC.

Marijuana-infused products are taxed at 20%. All other marijuana with 35% THC or less is taxed at 10%, and marijuana with THC content higher than 35% is taxed at 25%.

The state also collects a 7% tax from growers on the sale of marijuana products to dispensaries.

The marijuana tax revenue pays for administrative fees. Once those are accounted for, 45% will be reinvested in communities that have been disproportionately impacted by the war on drugs. The funds will pay for substance abuse and mental health programs, according to a news release from the Department of Revenue.

The more than $3.1 million in sales tax revenue will be divided between the state’s general fund and local governments where the purchases were made, according to the release.

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©2020 Chicago Tribune

Visit the Chicago Tribune at www.chicagotribune.com

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