Chicago desires to charge maximum three% tax on recreational cannabis sales

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Chicago Mayor Lori Lightfoot proposed in her 2020 spending budget that the city impose the maximum regional tax of three% on recreational marijuana sales, a levy that would come on best of a state sales tax and a retail tax primarily based on item potency and kind.

Marijuana Policy Project has calculated that the total retail marijuana tax paid by shoppers in Illinois will variety from 19.55% to 34.75%, causing issues by some that higher taxes will dampen sales and make it additional complicated to drive out the illicit market place.

Cannabis merchandise also will be topic to a wholesale tax of 7%.

Crain’s Chicago Business enterprise points that it is not surprising that Chicago desires to charge the complete three% tax permitted below the state’s Cannabis Regulation and Tax Act.

That is due to the fact Chicago, like numerous municipalities and states, is experiencing a spending budget deficit. Recreational cannabis taxes are becoming eyed to enable narrow the gap involving income and spending.

Marijuana Business enterprise Every day projects that Illinois could create up to $two.five billion in recreational cannabis sales annually when the market place is mature.

The sales will rely in component on tourism spending in the Chicago location.

The mayor banned retail marijuana shops in significantly of downtown Chicago but then made an exception for component of the well-known River North nightclub location.

For additional facts about the proposed three% tax, click here.

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