IL Hits $100 Million in Adult Use Cannabis Tax Revenue

By Benjamin Cox on October 20, 2020 at 8:33am

Governor J.B. Pritzker’s Office announced last week that the state had hit $100 million in revenue from the sale of adult use cannabis in the state. The Illinois Department of Revenue says that at least $16 million of the revenue will be heading to county and local governments. Last week, IDOR finalized its September collections and found the state took in $69.7 million through the Cannabis Regulation Fund, and $36.1 million from state and local sales taxes since January 1st, reflecting the last 8 months of sales.

Areas marked in blue on the map are part of the state’s R3 opportunity zones.

Under the new law, nearly 50% of revenues collected through the Cannabis Regulation Fund will be either reinvested through the Restore, Reinvest and Renew (R3) Program in communities that have been disproportionately impacted by the justice system or directed to address substance abuse and prevention, and mental health concerns. The program recently announced $31.5 million in grant opportunities to organizations working in the state’s opportunity zones that were designated prior to the implementation of the R3 program.

IDOR also announced that of the $105.9 million collected, at least $16.1 million will be directed to county and local governments with more on the way. Beginning July 1st, counties and local governments could begin imposing an additional levy on adult-use cannabis sales occurring under their jurisdiction. Once certified, IDOR will begin distributing this additional funding on a monthly basis to local governments; the first distribution, based on July sales, is expected to total nearly $3 million.