Cannabis taxes mounting, lined up for community-based programs
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[December 16, 2021]
By Greg Bishop
(The Center Square) – In
the nearly two years since Illinois legalized adult-use cannabis sales,
hundreds of millions in taxes have been collected. A quarter is set for
community-based programs in certain areas.
Since sales began on Jan. 1, 2020, the limited number of adult-use
cannabis dispensaries have sold more than $1.9 billion. The total taxes
collected are $562.7 million. Taxes can be up to 40%, depending on the
potency.
The taxes are split several ways. More than a third goes to the state’s
general revenue fund. Ten percent goes to unpaid bills. Eight percent
goes to law enforcement and two percent goes to public safety campaigns.
Nearly a quarter of every cannabis tax dollar goes to
community groups through the Restore, Reinvest and Renew Program.
“Areas eligible for funding were identified using community-level data
on gun injury, child poverty, unemployment, and state prison commitments
and returns, combined with disproportionately impacted areas identified
by the Illinois Department of Commerce and Economic Opportunity (DCEO),”
the Pritzker administration said Wednesday.
Illinois Criminal Justice Information Authority Acting Director Delrice
Adams said during a news conference the funds will be distributed
effectively throughout the state.
“Building on their strengths and addressing their barriers we create new
possibilities for communities that have been harmed by decades of
violence, economic disinvestment and excessive incarceration,” Adams
said.
The state has already distributed $35 million. An additional $45 million
is set to be released with details available at R3.Illinois.gov.
“Investing in all communities and making sure that all service
organizations large and small become equipped to create innovative
programs and strategies that address the diverse needs of their
communities and hopefully create a safer Illinois,” Adams said.
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Illinois Criminal Justice Information Authority acting Director
Delrice Adams Wednesday. Springfield Alderman Shawn Gregory on WMAY
last week.
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GovPritzker Facebook, WMAYNews Facebook
Local taxes can be stacked on top of state taxes, adding as much as
three percent. In Springfield, Alderman Shawn Gregory said the
city’s share of cannabis taxes, which is nearly $500,000, are going
to homeowners and for business assistance on the east side.
“It’s going to provide major dividends, even well after I’m gone …
It’s still going to be here for our community and I’m proud of
that,” Gregory told WMAY last week.
In Evanston, the city council earlier this year
announced it would be paying out money to Black residents who were
affected by discriminatory housing practices.
Gov. J.B. Pritzker’s cannabis director, former state Sen. Toi
Hutchinson, has taken a new role with a national cannabis reform
advocacy group.
“I’m pleased to be joining the team at [Marijuana Policy Project],
where I will continue my years-long effort to develop and support
cannabis legalization legislation that centers on equity and
repairing the harms of the past,” Hutchinson said in a statement
Wednesday. “We are incredibly proud of the hard work and lessons
learned in Illinois, standing up programs to invest in equity
entrepreneurs, reinvesting in communities, and clearing hundreds of
thousands of arrests and criminal records.
Pritzker said Hutchinson has been a go-to adviser on cannabis policy
and will be missed.
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