Illinois legal marijuana sales could rise if taxes are lowered, some groups claim

CHICAGO (WLS) — The state of Illinois is reporting report tax income on authorized marijuana, with practically half a billion {dollars} within the final yr. Illinois shoppers pay the second highest taxes within the nation once they purchase authorized leisure marijuana.

Nonetheless, specialists declare decreasing taxes may imply more cash for the organizations that profit from these funds.

The state of Illinois made $445 million {dollars} in tax income from the sale of authorized marijuana within the final fiscal yr.

However the place is that cash going?

A lot of it funds psychological well being, authorized assist and housing packages in underserved communities. Bethany Little’s nonprofit, WIN Restoration, advantages from these taxes.

“To have the ability to get a refund from marijuana taxes is bittersweet for a recovering addict like myself,” she mentioned.

WIN Restoration gives shelter and assist companies for previously incarcerated ladies and LGBTQ+ people.

“Generally you simply want someone to carry your hand to get by way of the method,” Little mentioned.

WIN Restoration is now increasing that work because of taxes on authorized pot.

The Illinois Jail Challenge, which fights for prison justice reform, has additionally benefited from authorized marijuana tax income.

Twenty 5 % of Illinois’ pot tax goes to non-profit organizations with small budgets in communities designated as socioeconomically deprived. One other 20% of the state’s marijuana tax income goes to substance abuse, prevention and psychological well being care packages.

The most important portion of the tax proceeds covers the state’s prices for administering the marijuana program and expunging minor hashish offences.

To gasoline all that, Illinois has the second highest leisure hashish tax within the nation, beginning at 31.25%, which is simply lower than the state of Washington.

The I-Staff discovered hashish edibles on the market in Ann Arbor, Michigan for $14. That very same product in Los Angeles bought for $23. And in Chicago shoppers pay $30 for a similar factor.

“The taxes may come down just a little bit,” mentioned authorized hashish client Alex Rosata.

Trade specialists like Jeremy Unruh of Verilife Hashish dispensary mentioned when costs are excessive, shoppers look elsewhere, like on the black market.

“It is as much as us, the operators in addition to the regulators within the state, to make sure that the merchandise we make have a value that is aggressive with the illicit market, as a result of that is the best way we eliminate the illicit market,” Unruh mentioned.

He and others say decreasing the tax fee may additionally imply extra gross sales and income for the state and, in flip, the packages that profit from these tax {dollars}.

The I-Staff requested researchers at authorized hashish knowledge middle New Frontier Knowledge to check Illinois’ tax fee and gross sales to different states. They mentioned that slicing Illinois’ tax fee in half may win us extra tax {dollars}.

“There’s that candy spot in the course of states which have tax charges between 16 and 18%,” mentioned Dr. Amanda Reiman of New Frontier Knowledge. “The tax charges have the potential of driving individuals into that unregulated area as a result of they’re making an attempt to economize.”

Little mentioned each greenback counts. They’re utilizing their hashish state grant and to construct a brand new 8,000 sq. foot useful resource middle. It should present individuals with counseling, coaching lessons, household reunification and extra.

“Now we have the flexibility to carry that individual’s hand to allow them to achieve success and be a productive member of society,” Little mentioned.

Governor JB Pritzker’s workplace responded to criticism of the state’s tax fee saying within the final yr, Illinois has seen a 50% enhance in complete tax reported from adult-use hashish. They added that the state has elevated income annually since legalization and that it is utilizing that income for communities in want.