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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.

sunnyside, illinois, marijuana, tax

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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Cannabis

Four Tips to Secure Cannabis Dispensaries in Oregon Today

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cannabis dispensaries with grilles

Since the chain of cannabis crime is being beaded at a much faster rate in Portland, Oregano, there is a dire need to enhance the security measures. Robbery of a cannabis dispensary is as money-spinning as of a bank. Until an act is passed to allow the transactions, cannabis dispensaries remain the prime target of a robbery as all dealings continued to be done in cash.

Tips to Fortify Cannabis Dispensaries Security

The recent report by the Oregon Liquor Control Commission showed almost 120 robberies since march 2020  in Portland Metro alone. It resulted in a total loss of $500,000 in terms of both products and cash. To strengthen the security around the dispensary in a quick and easy way, a key step is to install rolling doors to keep criminal activities at bay.

Tip #1 – Tight Security Measures at Storefront

One of the most popular yet helpful ideas to prevent looting is to install heavy-duty steel doors, which can help add an extra layer of protection for the cannabis business. The plus point is that the manufacturer can directly mount it into the already existing buildings exteriorly. Also, these are significantly helpful in protecting the glass windows, which can be expensive to replace.

What’s more, it can block the view of the thieves to the merchandise. These are different from the other standard rolling grills. With these, the criminals won’t be able to see the stockware when the door is closed. Some of the dispensaries have tested their door against the Department of Defense to assure that even no violent attack can harm them. These doors are lift- and pry-resistant.

Tip #2 – Need of Visibility and Ventilation

If the cannabis dispensary owner wants to let the outside world see their merchandise, there is a need for more robust security. With compact impact glass and a heavy-duty grille, it is possible to stay away from the world’s sight when needed.

Easy custom orders and installation makes it an excellent choice to adhere to the security demands. Heavy-duty grilles that have rods closely spaced and strong interconnections are difficult to lift and attack than the standard grilles.

ALSO READ: First Medical Marijuana Dispensary Opens- Wait over for Missourians

The rolling grilles become even a much better option to protect the counters in the cannabis dispensaries. There is no need to do any modifications to adjust it behind the glass door. It can be easily installed in small places where the ceiling is low.

Tip #3 – Separating Cannabis Dispensary from the Store

Cannabis dispensaries in the high-end stores need extra protection, and thus, important to separate them from the rest of the shop. Cannabis dispensary separated from the rest of the shop can have different operational hours like some states have specifically specified.

The mesh metal grilles look much better and significantly affect the aesthetics of the store. It can deliver both beauty and security while customers can easily view the cannabis products of the store. There are manufacturers who are even designing logos on the grilles to give aesthetic pleasure.

Tip #4 – Secure Delivery to and from Cannabis Dispensaries

The cannabis dispensary owners usually tend to forget about secure deliveries that are most prone to attacks. Deliveries being made at the store back and the receiving areas are usually the areas of concern. It is extremely important to track down the time of delivery, people present there, and the stock delivered.

ALSO READ: Cannabis Home Delivery Services Likely to commence in Massachusetts

The heavy-duty service rolling doors provide exceptional security than those traditional sectional rolling doors. They are made to meet the demands of beauty and security, both as they are highly customizable and can be easily adjusted to limited spaces. They offer the idea of security by using stainless steel, galvanized steel, and aluminum in the grilles.

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Impaired Driving: A Must Consideration for the State’s Cannabis Bill

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impaired driving in New York

Even with the concept of Vision Zero and more raising concerns for the traffic rules, Albany legislators aren’t focused on it, while rushing to legalize the use of cannabis in New York. Silive shares the thoughts of how important it is to slow down the process of legalization and first pass on a bill that would stop impaired driving and hold marijuana-impaired drivers accountable for accidents.

Before the legalization of marijuana, to create a safer environment, it is extremely important to put pressure on the notion that studies categorize all intoxicating substances as unsafe for driving.

Impaired Driving Same as a Speeding Ticket

No consideration against the impaired driving would make people think it unimportant as a speeding ticket. This indirect message by the leaders would eventually lead to a greater number of casualties with each passing day.

It is nothing but a truth that marijuana has the potency to affect concentration, response time, motor function, and movement. Also, the science links a high concentration of THC in the blood due to cannabis intake to impaired driving. Surprisingly, marijuana is a second substance that has a major influence on driving capability after alcohol.

Need to Reinforce the Drug Definition in New York

Apart from considering classifying impaired driving due to marijuana as a minor criminal act, some light should also be shed on revising the term drug as other 45 states have done. Any substance should be called a drug that can compromise the ability to think, focus, and react.

ALSO READ: Marijuana Legalization And Decriminalization Bills Delayed By Murphy 

If this act is not taken, according to the law, they cannot be charged if the alleged impaired drivers refuse to have a chemical test. The dismissal would eventually result in chaos and poor law enforcement. Such impaired drivers could not be held accountable and would be back on the roads again, risking the lives of hundreds of people.

The legislators of Albany must think about the message they are conveying to the younger generation out there. Already, as shown by the personal accounts of many teenagers, marijuana is nothing big for them and seems harmless.

Different treatment for impaired drivers than those drunken drivers would further strengthen this perception among people. Since neighboring states have already legalized marijuana for recreational and other purposes, New York seems to be next.

Strict Laws and More Investment in the Traffic Sector

Along with the modifications in the law to serve a better criminal justice system, there is a need to pass on better provisions to ensure safety on roads. No person should become a target of  people managing a 3,00 pounds vehicle while being impaired by marijuana, asserts the source.

ALSO READ: Denver’s Cannabis Ordinance Will Jeopardize Hard Earned Public Health And Safety

There should be provisions in the law to hold such people against the criminal act. To run a smooth traffic system, it is mandatory to design out complete traffic safety rules. There should be more people, funding, and resources to train the Drug Recognition Expert (DRE) officers and create awareness of the possible effects of drug abuse, including marijuana. As time has changed, the use of synthetic drugs has made it difficult to articulate a specific one; thus, the need for DRE officers has become as important as the need to include the provisions in the bill.

The legalization in New York for cannabis should be set straight from the start. Before the bill includes and assures safety on roads, the legalization of recreational cannabis is a non-starter. All the roads

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Cannabis Sales Reaches Skies, Set Highest Mark With $17.5 Billion Sales

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Cannabis Industry On Rise

The novel coronavirus has been devastating for most industries. For some industries, however, it was bliss. Concerning cannabis, 2020 was a breakout year. Across the United States, 15 states granted permission for adult use, while 35 states allowed medicinal use of cannabis. According to a recent  report by Forbes, there was a 46% incline in cannabis sales and use in comparison to 2019, with a budget of $17.5 billion.

Cannabis Sales Increase In Different States

Generation of sales or profit occurs from both medical and adult-use of cannabis. However, recreational or adult-use generates the highest portion of sales, especially in markets like the Colorado marijuana market. In Colorado, the sale of marijuana increased by 26 percent resulting in business involving $2.2 billion. 

According to BDSA, an improvement in sales of Oregon occur by 29 percent from 2019. Moreover, the Oregon market makes a business of $1.1 billion. The cannabis market in Illinois is under progress and development. Yet, it was able to achieve the highest sales in 2020. 

ALSO READ: Know Doctors Recommended Marijuana Tips

Moreover, during 2020 Illinois marijuana industry expanded from medical use to adult use. As a result of legalizing adult-use, an increase of $784 million occurs in sales. Besides, now Illinois is doing sales of over $1 billion in its marijuana market.

Sales in California and Florida also increased. $ 586 million increase in sales of marijuana in the California market occurs, a total of about $3.5 billion business is happening in it. Moreover, the rise of $473 million occurs in the Florida marijuana market. 

What causes The Rise In the Economy Of the Marijuana Industry And Market?

According to BDSA’s insights and analytics department, the cannabis industry is recession-proof and continues to progress. Moreover, it has the most potential of evolving and flourishing. 

According to Kelly Nielsen, the rise in the marijuana industry was due to three reasons. Firstly, during the coronavirus pandemic, dispensaries were major-businesses, and many individuals built their own. 

Secondly, more devoted customers enter big markets like California, Colorado, and Oregon. Third, multiple states legalize the use of cannabis for both medical and adult use. As a result, the overall sale of marijuana products increased remarkably in the previous year. 

Moreover, another major factor is that individuals have begun to consume cannabis in larger amounts. Furthermore, more and more people are now involved in marijuana consumption.

Cannabis users agree that their consumption of cannabis has increased by 25 percent since the beginning of the COVID-19 pandemic. Additionally, the demand for cannabis in legal markets has risen since legalization. According to Nielsen, alcohol penetration is 60 percent, while marijuana penetration is 50 percent.

Cannabis Industry Achieves Mega Sales Hits

Urban Leaf co-founder Josh Bubeck states that 2020 has been a tough year due to the coronavirus pandemic. However, Urban Leaf was able to enhance the market penetration of its cannabis products from 37% to 39%. Moreover, according to Bubeck, the company had its best sales during the last week.

Cannabis companies that have dispensaries at the places of tourists’ attraction suffer the most losses. Similarly, Urban Leaf‘s flagship location near Sea World suffered the biggest-drop. 

ALSO READ: Massachusetts To Enjoy Marijuana-Infused Seltzers

The legalization of marijuana enables doing business legally and prohibits doing illegal activities. As a result, legal-activities rise, and the pressure of high demand in legal setup rises. Similarly, the closing of illegal dispensaries moves more individuals towards legal dispensaries, leading to a further rise in sales. 

Like other cannabis companies, Sava also gets involved deeply in the market. Moreover, according to the founder of Sava, the company observes 60% more growth in their sales during 2020.

According to Andrea Brooks, people are getting comfortable with new legalization and decriminalization policies. Moreover, as people are getting-used-to cannabis policies, the demand for cannabis products is rising, and so are its sales. Despite large profits and sales during the pandemic, no marijuana industrialists want to relive the stressful 2020. 

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