A 3% tax on cannabis retailers was approved by a Cook County panel Wednesday and is expected to be approved by the full Board of Commissioners Thursday — meaning taxes on some pot products in Chicago could exceed 41% by the summer. The county proposed the Cannabis Retailers’ Occupation Tax on recreational cannabis in December. It would be imposed on “all persons engaged in the business of selling cannabis.”
That 3% would be in addition to the city’s 3% planned tax and state excise taxes of 10-25%, based on the level of THC, the ingredient in pot that gets users high, in the product purchased. Marijuana products also carry normal sales taxes — which in Chicago are 10.25% — meaning some products could carry taxes of 41.25% starting this summer.
The 3% figure is the highest the county can tax, according to state law. The county wouldn’t be able to start collecting revenue from drug sales until July.
While the total taxes are high, they are less than what’s charged to buy a pack of cigarettes in Chicago. Federal, state and local taxes are more than $8 on a pack of cigarettes, which can cost $14-16 in the city. Commissioner Larry Suffredin, D-Evanston, said the tax is needed because pot legalization will lead to increased health and policing costs.
Read more at chicago.suntimes.com
