Illinois has been the source for jokes about excessive taxing for decades.
Now, Illinois law is not only taxing a customer’s purchase of cannabis products but the state is basically taxing the quality of the customer’s high.
For the highest potency of marijuana, a customer is going to pay the maximum 25% of the purchase price.
According to the Illinois Municipal League, the Prairie State has a graduated tax set up for recreational marijuana.
The more concentrated the THC, the higher the tax rate.
- Marijuana and cannabis-infused products with less than 35% THC is taxed at 10% of the purchase price.
- Cannabis-infused products with more than 35% THC is taxed at 20% of the purchase price.
- Marijuana with more than 35% THC is taxed at 25% of the purchase price.
- Medical marijuana is exempted from these taxes.
According to the Marijuana Policy Project, in addition to these scalable tax rates, the state’s regular 6.25% sales tax rate also applies, along with local taxes of up to 3.5%.
The range consumers pay at the register (which does not include the 7% tax levied at wholesale) is be between 19.55% to 34.75% retail tax, depending on the product’s potency.
For more about how Illinois taxed cannabis sales, read “Steep prices and high taxes trigger sticker shock: ‘Some consumers will prefer the criminal market.’”
How high can the percentage of THC go?
Chicago based cultivator Green Thumb Industries (GTI) reported less than a year ago that its house cannabis strain Brownie Scout tested at 37.5% total potential THC.
Representatives of GTI reported to High Times in an email that the flower is the most potent the lab has seen, and they believe that the 37.5% THC test result is a record-setting achievement.
Brownie Scout is a cross between Koser Kush and Platinum Girl Scout Cookies that was bred at the company’s facility in Rock Island.
Representatives at GTI say the strain has been popular with patients, who report therapeutic effects including relaxation, pain relief, and anti-anxiety benefits since the medical marijuana program began in Illinois in 2015.