“We are getting almost a third, nearly 30 percent of the revenue that we get from the cannabis industry comes from people coming to Illinois and spending money at dispensaries.”
By Andrew Hensel, The Center Square
Numbers show Illinois residents are paying 89 percent more than the rest of the country when looking at cannabis prices. However, Gov. J.B. Pritzker (D) says the state is doing it the right way.
Recreational marijuana became legal for Illinoisans at the start of 2020. Since then, Illinoisans have been paying more for their cannabis than the majority of states where the drug has been legalized.
According to analysis by the Illinois Policy Institute, cannabis users pay 89 percent more on average for their products than the rest of the U.S. market.
Pritzker was asked about the prices and said the state is making money.
“We still have a growing industry, as you know, it is one that I initiated in 2019 that has brought in almost $450 million to state and local governments,” Pritzker told The Center Square. “We want to encourage all industries to grow.”
Michigan has legal marijuana, and so does Missouri. However, Pritzker does not worry that the state could lose business to these neighboring states.
“We are getting almost a third, nearly 30 percent of the revenue that we get from the cannabis industry comes from people coming to Illinois and spending money at dispensaries,” Pritzker said.
According to the report, Illinois is the third-largest cannabis market in the U.S., behind Michigan and California.
Illinois law states that any cannabis-infused product shall be taxed at a rate of 20 percent of the purchase price. The tax rate increases with the potency of the product and can exceed 40 percent if local governments tack on an additional 3 percent tax.
Photo element courtesy of J.B. Pritzker.