Recreational marijuana revenue has helped cities offset some retail losses – Suburban Life Publications


Remember all of those long lines outside the marijuana dispensaries on Jan. 1, including the one at an Ottawa dispensary, when recreational marijuana was legalized?

Well, the cities’ share of that money has been coming in since late February – and yes, city treasurers say that money helped offset retail sales losses caused by the COVID-19 pandemic. At least, they think so.

Since January, Illinois residents and visitors have spent about $240 million on legalized recreational marijuana, producing $52 million in state revenue. Of that, $34.7 million came from excise taxes, and $18 million came from sales taxes.

Here’s the trouble for city treasurers in cities such as Ottawa that host a dispensary: Retail sales figures aren’t itemized, making it impossible to say how much of the falling retail figures were comprised of marijuana sales.

In fact, the only marijuana-related figure cities can pinpoint is the use tax. Every municipality in Illinois gets a small share of sales even if it isn’t a host to a dispensary. That’s called the use tax, and it’s based on population.

Under the law, 8% of that revenue will be shared with local governments, while the Illinois Department of Revenue estimates $25.9 million from excise and sales taxes will be directed to the state’s General Revenue Fund, according to Capitol News Illinois.

Also under the law, 25% of revenues collected from recreational marijuana sales will be reinvested through the R3 program (Restore, Reinvest and Renew) in communities that have been disproportionately affected by the justice system and to address substance abuse and prevention and mental health concerns.

Example: La Salle County has drawn a year-to-date total of $9,496.90; Bureau County’s running total is $2,635.58. The difference isn’t because more marijuana is sold in La Salle County than in Bureau County (although that may indeed be

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