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Illinois’ Cannabis Tax Revenue Touches $52 million Mark After Six Months Only

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Illinois is one of the states where the use of marijuana is legal. While medicinal marijuana has been legal for around 5 years, the use of recreational marijuana was legalized rather recently. The provincial government legalized recreational marijuana in January 2020.

As of now, the people of Illinois are allowed to have up to 5 cannabis plants at home. However, these are for medicinal purposes only. For recreational use, plants have to be commercially licensed first.

It won’t be wrong to say that this legalization has been a blessing for the economy of the state. In only six months since its legalization, Illinois saw a $239 million worth sale of adult-use cannabis. While the exploding cannabis sale is something to behold in itself, Illinois earned $52 million in tax revenue, extending from January to July. No doubt, it is a milestone for the state nonetheless.

According to some sources Illinois Department of Revenue was able to collect a little over $34.5 million in excise taxes in the same period. That coupled with the $18 million in sales taxes led to a cumulative total just tipping over the $52 million marks.

The fiscal 2020 budget proposed by Gov. Pritzker had a rather humble estimate of $28 million from cannabis sales. However, recent developments in the cannabis demand and supply chain showed almost an 85% increase in the revenue collected.  The main reason behind these booming sales embedding acceptance among the masses. However, cannabis remains an illegal drug federally.

Recently, the state reported sales of over $44 million in just a month of May. While the sales went off the charts and broke all previous records, it didn’t just settle there. The following month, even higher sales of worth more than $47.5 million of adult-use cannabis were reported.

The launch of Sunnyside dispensary in South Beloit was yet another contributor to these sales. The South Beloit dispensary is the largest recreational marijuana dispensary in all of Illinois. The dispensary also brought a lot of investment into the state as well.

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Image Credit: businesswire.com

Tax Breakdown

The Cannabis Regulation and Tax Act (CRTA) umbrellas all types of taxes on any cannabis sales. Under this act, cannabis has two types of taxes imposed on itself. Firstly, they applied a state-imposed cultivation privilege tax of 7% to all gross receipts by a cultivator to a dispensary. Secondly, they also applied a potency based tax to the product.

A standard 20% tax applies to all cannabis-infused products. However, products containing 35% or less THC concentration have a 10% tax applied to them. Offerings containing more than 35% THC come with a 25% tax tag.

In addition, municipalities can also have a 3% tax cut, if they so wish.

So, where will all the money go?

The IDFPR said that it would deposit $25.9 million into the general fund of the state. This is 72% more than what the fiscal budget managed to foresee. Moreover, one-fourth of these revenues would go to the areas affected the most by ‘war on drugs’.

There’s also an R3 initiative. It means to restore, reinvest, and renew. Under the CRT, 25% of the taxes would go to this initiative. The state can then use these funds in a number of ways.

It looks like the miracles of cannabis legalization are showering upon Illinois. The revenue generated would definitely go a long way in paving the way for the state’s economy. If they distribute the generated revenue with equity, the effects would soon start to bloom.

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How Michigan’s New Cannabis Social Equity Reforms Work

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Black & Brown Cannabis Guild compensates convicts

Cannabis regulations, when done right, can pave the way for an equal and prosperous society. Unfortunately, much of history, especially in the United States of America, reflects the opposite. The nation’s long standing so-called ‘War On Drugs‘ still leaves lasting scars on entire communities. That’s why when it comes to racial justice and activism, expungement of cannabis-related charges can bring a lot of good. And especially since studies show black and non-white minorities faced tremendously greater risk of arrest then white cannabis users. Enter the Black & Brown Cannabis Guild.

In Michigan, a state where recreational and medicinal marijuana received legal status in 2018, wrongs need righting. Over the past several decades, countless convictions subjected the innocent. And the punishments, disproportionately severe in relation to the offence, certainly didn’t fit the crime. Simple possession of cannabis could lead to misdemeanor charges, while usage often led to jail time. All of these criminal prosecutions led to permanent stains on records, leading to further marginalization for many.

The Black And Brown Cannabis Guild (BBCG) seeks to secure recompense for racial persecutions

Once Michigan legalized cannabis usage, the obvious question arose. What about those currently serving sentences over cannabis charges, and those with permanent strikes? After all, the countless African American, Latino and other people of color being punished should no longer face criminal records. That’s like prosecuting homosexual relationships, years after the practice got decriminalized. It certainly seemed like amnesty and a clean slate were sorely due.

Recently, the state of Vermont signed off on proposed bills that would try to improve social equity. The two main ways the bill seeks to do this included increased funding for small retailers and expungement. The former seeks to help out minority owners of cannabis stores get up on their feet and compete with bigger, more-privileged chains. And the latter measure would not only immediately release convicts but also wipe the slate clean for all with cannabis charges. Only with this, the bill says, will marginalized communities gain the tools to overcome decades of racism and prejudice.

The War On Drugs left many minority communities persecuted, and expungement is the only moral compensation

The United States at some point decided that drugs of any kind needed brutality to get rid of, at any cost. As a result, police raids, widespread arrests, convictions and wiretaps became all too common since the 1970s. The Nixon-era policy sought to curb increasing illegal drug use, despite not targeting the root causes behind drug usage. This means that instead of combatting poverty, addiction, gang influences and corruption the program simply punished the poor users. The BBCG therefore wants to assist the people of color, and anyone else, wrongfully persecuted.

People with cannabis charges on their permanent record simply face too much oppression. Even outside of jail, they bear reduced likelihoods of employment opportunities, security checks, prejudice and stigma. They carry the label the police wrongfully stuck to them. It doesn’t matter if the arrest was over a simple weed joint or crystal methamphetamine, the stigma remains the same. Furthermore, entire minority communities of former convicts often face discrimination.

The move comes as long overdue, but it is still a step in the right direction

Nothing the government does can magically erase decades of oppression. And it also cannot cure racism, bigotry or discrimination overnight. However, by issuing due apologies, absolving the convicted of charges and funding minority communities, something positive is carried out. These steps hopefully will go a long way for many marginalized groups, as the BBCG hopes.

We can only hope other states catch onto this much-needed policy. For the latest, stay tuned!

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Cannabis Factory Invigorates Small Missouri Town

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Cannabis factory helps small town

Take a drive into the heart of Missouri, and you’ll come across a small little town by the name of Carrollton. A small, idyllic place, there’s a lot to catch the eye, but very little in the way of commercial hustle bustle. Or at least, that’s what you would have seen last year. Today, things are rapidly changing for this remote town, and for the better. This comes in the form of a cannabis factory.

Thanks to the contribution of Carrollton born Ty Klein, the area is soon to be economically bolstered by the advent of a new local industry. And you guessed it, it’s a brand new cannabis processing plant! It is definitely going to be a godsend for industrial development in this town, catalyzing further development. But the most interesting part is how the history of the region and how that will affect the growth in terms of economic output.

 

A new cannabis factory is ideal for the location

 

With a modest population of 3,600 people, Carrollton is by no means a small town. It has a lot of empty space, just what a medium sized investment venture needs. And it is ideal for growing cannabis, with just the right temperatures most of the year. And that’s exactly why the owner believes that Carrollton will become a leading point in raising marijuana acceptance in the heart of America, where distrust for the drug is rife.

The company has chosen the name Carroll County Cannabis Co., which is quite the mouthful. To smoothen out that tongue twister, the company just goes by C4. Considering that the region has seen massive unemployment, this could be phenomenal in improving the lives of Carrolltonians. And not just by paying them well.

 

Growing marijuana in turbulent waters

 

Despite the fact that cannabis is legal in Missouri, there’s still quite the stigma against it. Culturally, the Mideast is not the most accepting of using recreational drugs. For a variety of political reasons, the opposition to cannabis distribution is wide and vocal. But this cannabis factory might just change opinions slowly and surely.

There’s definitely a long way to go. Marijuana remains a strongly controlled and regulated drug to sell. Ty Klein has gotten his hands on three licenses to sell marijuana, which is a great fear in itself. Only a small percentage of aspiring cannabis growers are granted licenses, and against great political pressure. It’s therefore very inspiring how Ty and his company are working right in the heart of the opposition to plant the seeds a brighter future for their state. They plan on reaping what they’ve down before this Halloween, and hopefully show people that there’s nothing to fear from the plant.

 

Klein and crew are getting things done

 

Pushing back against the tide, the intrepid team is hard at work getting everything ready to roll. And teamwork is really central to their ethos. After all, Ty is running the show alongside his childhood best friend, Brandon Green. The two make for inspiring leadership.

As the engines start warming up for large scale, fully fledged, high tech cannabis production, the energy demands of the station are expected to shoot up too. By estimate, the single factory will take the same amount of energy as the rest of the town put together. That’s why the city has agreed to put up a small power station to provide energy to their industry.

All in all, it’s definitely much brighten horizons here on out for Carrollton. Who knows, this might just be the factory to make this small town the next Hershey, Pennsylvania. In any case, things are certainly looking up.

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How The Cannabis Industry Can Reform To Protect The Environment

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Environment issues need to be solved by the cannabis industry

These days, every industry conceivable seems to boast about one thing in particular: how they supposedly help the environment. Look anywhere from the top fast fashion brands, to large-scale agriculture, and they’ll all claim to minimize their ‘carbon footprint’. This term entered the vernacular in the 1990’s by environmentalists, after the ‘ecological footprint’ concept. The carbon footprint refers to the amount of harmful CO2 (carbon dioxide) emissions produced by individuals. Therefore, any major company reducing its carbon footprint would entail cutting down its harmful emissions.

In a world rife with rampant climate change crises, environmental protection simply is paramount. According to the scientific consensus, we already caused irreversible climate change due to centuries’ worth of carbon dioxide pollution. Hence, many industries feel spurred to make big environmental changes, albeit sometimes for the press. This holds especially true for the cannabis industry, which needs all the good publicity it can get due to decades of prejudice. The nascent industry, only operating in a few states in the US, needs to similarly learn to take steps to reduce pollution.

 

The National Cannabis Industry Association seeks to guide lawmakers and cannabis companies alike

 

The National Cannabis Industry Association (NCIA) campaigns to reform certain practices in the cannabis industry for the better. The cannabis industry consists of a broad variety of goods, each with different production processes. This means that recreational weed, hemp, medicinal marijuana, CBD Oils, dabs and bongs all come from different materials. In processing these materials, various chemical steps and machine exhausts lead to harmful pollution. In the state of Colorado, law requires that low THC (tetrahydrocannabinol) concentrated plant matter from cannabis get disposed of in landfills.

The problem arises when the company needs to get rid of its waste. By state law, this waste matter gets mixed with other, non-cannabis waste evenly. This mixing must happen in a 50% to 50% ratio, according to legislation. However, since over 90% of the waste isn’t from cannabis producers, it essentially increases the carbon footprint of the company. It’s unfair because the cannabis industry generally produces very little waste so it should have a small carbon footprint. However the company can’t report a small footprint because they can’t control what they’re mixing in with their waste. So they’re kind of getting abused, forced to report much higher carbon footprints than they should. Meanwhile a lot of industries that actually produce a lot of carbon go let off the hook, having jettisoned their waste into the cannabinoid industry.

 

What kind of legislation can help fix this environment issue?

 

Well, for starters, it’s absurd to ask a clear fifty fifty split. We need to keep in mind that the carbon emissions of the cannabis industry far underweigh those of the articles mixed with the former industry’s refuse. And furthermore, saving the environment must reign the number one priority.

Secondly, the waste from the industry disposed of in the most environmentally green way. Whether that means landfills, composting, recycling or bioengineering it to make useful products is yet to be seen. More work needs doing to reduce the environmental fallout of this industry. Thirdly, we need to campaign for ethical landfill laws, and hold larger industries with more waste and hence larger carbon footprints accountable. It’s essential to know where every candidate stands in terms of cannabis regulation laws in your local elections. We have to be able to show the right stance against overly restrictive legislation, and show that we won’t abide an unfair system.

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