State: $52 Million in Adult-Use Cannabis Tax Revenue in First 6 Months

State: $52 Million in Adult-Use Cannabis Tax Revenue in First 6 Months

State of Illlinois officials announced Tuesday (July 14, 2020) that the state has earned $52 million in revenue during the first six months of Illinois’ new adult-use cannabis industry.

The Illinois Cannabis Regulation and Tax Act program launched on Jan. 1.

Of the $52 million collected in adult-use cannabis tax revenue, $34.7 million comes from excise taxes.

Since January, more than $239 million has been spent on recreational cannabis in Illinois.

In addition to the cannabis excise taxes, the Illinois Department of Revenue collected $18 million in sales taxes that will be shared with local governments. In total, the department estimates $25.9 million will be directed to the state’s General Fund from excise and sales taxes.

The state offers economic opportunity for all Illinois residents, regardless of background.

Under the CRTA, 25% of revenues collected from recreational cannabis sales will be either reinvested through the Restore, Reinvest and Renew (R3) Program in communities that have been disproportionately impacted by the justice system, directed to address substance abuse and prevention and mental health concerns, or allocated to local governments to support their own crime prevention programs.

In addition to providing financial support to organizations offering services in disproportionately impacted communities, the administration offered lower application fees, low-interest loans, and informational workshops on cannabis-related licenses to social equity applicants.

State officials are working with the Cook County State’s Attorney’s Office, the Prisoner Review Board, and state’s attorneys across Illinois to expunge the records of non-violent offenders with a cannabis related conviction.

For more information on the adult-use legal cannabis industry, visit https://www2.illinois.gov/cannabis/Pages/default.aspx.

SOURCE: state of Illinois news release