Effective July 1st, 2020, adult use consumers will see yet another increase in the cost of cannabis products at Illinois dispensaries. Today marks the addition of a local municipality tax on adult use cannabis sales of 6%. Locally, 3% of this is allocated to the city of Quincy while the other 3% goes to Adams County. This significant taxation increase deals yet another blow to the legal cannabis industry in Illinois and sadly pushes more consumers back to the illicit black market.
Adult use cannabis tax rates
Adult use cannabis sales are already taxed exponentially by the state of Illinois. In addition to the general 8% sales tax, cannabis infused products (like edibles) are taxed 20%, inhalation products under 35% THC concentration are taxed 10% and those above that 35% threshold are slapped with a 25% tax. Moving forward, adult use consumers can expect to pay a grand total of 24% to 38% taxes on their cannabis products locally.
Benefits of an Illinois medical cannabis card
Fortunately, this new increase does not impact Illinois medical cannabis cardholders. These individuals incur just a 1% tax on all cannabis purchases, no matter the THC concentration or product type. They dodge the 8% sales tax as well. There are benefits to becoming an Illinois medical cannabis cardholder including the aforementioned reduced tax rate, access to a vast patient-exclusive menu and the option to grow their own cannabis. In fact, the costs associated with getting an Illinois medical card are quite minimal when compared to how much is saved when buying cannabis products at the 1% tax rate.
For Illinois residents with a qualifying medical condition, it may make more sense for individuals to consider becoming an Illinois medical cardholder. Check out our How To Get An Illinois Medical Cannabis Card page for an easy-to-follow, step-by-step walkthrough of the process.
Cannabis price relief is on the horizon
We ask that our adult use consumers be respectful to Herbal Remedies staff, particularly during this taxation increase. It‘s not something we wish to impose but Illinois adult use cannabis law requires it. This taxation will become less of a burden in the years to come as Illinois cultivation centers and craft growers expand cannabis production operations. This will drive cannabis prices to decrease in time as the state’s cannabis supply begins to outweigh consumer demand. The bright side to any tax increase is that these dollars are ultimately invested into the local economy.