Illinois made headlines when cannabis dispensaries in the state amassed nearly $40 million in sales in their first month. In fact, it was the second-highest performing month of any state cannabis industry.
Now, after going through the receipts, their department of revenue is announcing even more good news. With the dust settling from their historic first month of sales, Illinois is gaining nearly $10 million in tax revenue.
This windfall puts Illinois far ahead of initial estimates. Prior to January, the office of Governor J.B. Pritzker announced that they expected to take in around $5 million.
One significant factor in this performance is Illinois’ tax rates. At 20%, the cannabis tax in the Land of Lincoln is among the highest in the country.
Also, a large portion of sales in Illinois were made by citizens of neighboring states without similar cannabis laws.
Now that the tax revenue influx has been accounted for, Illinois will now begin the process of utilizing it.
First, a large sum of the tax revenue will go toward paying administrative fees related to establishing Illinois’ cannabis program.
After accounting for these costs, a great deal of funds will flow to programs aimed at restorative justice measures. Such programs focus on substance abuse, cannabis education and law enforcement training, and gun violence, among others.
