IDOA releases details for updated cannabis tax rates
The Illinois Department of Revenue (IDOR) recently released details for the state’s updated excise tax rates and fees for cannabis cultivation privilege tax, the cannabis purchaser excise tax, and other non-cannabis products, including cigarettes, tobacco, liquor, coin-operated amusement device, dry-cleaning solvent, electricity for municipalities, invested capital, gas, hotels, parking, and more.
The two cannabis-related tax details included the cannabis cultivation privilege tax and the cannabis purchaser excise tax, both of which remained the same. The cannabis cultivation privilege tax remained at 7 percent of taxable receipts from the first sale of cannabis by a cultivator.
The cannabis purchaser excise tax, which also remained the same, was again broken down in three parts and partly based on THC percentage levels:
- 10% of the purchase price for the purchase from a cannabis retailer of adult use cannabis with an adjusted THC level at 35% or less*
- 25% of the purchase price for the purchase from a cannabis retailer of adult use cannabis with an adjusted THC level above 35%*
- 20% of the purchase price for the purchase from a cannabis retailer of adult use cannabis infused products
The tax imposed under this Section is not imposed on cannabis that is subject to tax under the Compassionate Use of Medical Cannabis Program Act.
The asterisk listed the following: Per 410 ILCS 705/65-10, any cannabis subject to Cannabis Purchaser Excise Tax (with the exception of cannabis infused products) is taxed using the “adjusted” THC content. The adjusted THC content is calculated by adding the percentage of delta-9-tetrahydrocannabinol plus .877 multiplied by the percentage of tetrahydrocannabinolic acid (410 ILCS 705/65-5).
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