How Medical Marijuana is Taxed in Illinois
- Aug 14, 2014 | Gail Cole
Last summer, Illinois Governor Pat Quinn Illinois Department of Revenue amended several regulations to account for it.
Medical cannabis and cannabis infused products sold by a registered dispensing organization are considered prescription and nonprescription medicines and drugs in Illinois and are subject to the following:
- 1% Retailers’ Occupation Tax
- Applicable local taxes
On the other hand, paraphernalia associated with medical marijuana is subject to the general sales and use tax rate of 6.25%.
The department notes that medical marijuana is also subject to the following:
- The Metro East Mass Transit District Retailers’ Occupation Tax (as provided in 70 ILCS 3610.5.01)
- The Regional Transportation Authority Retailers’ Occupation Tax (taxed at the rate established for prescription and nonprescription medicines in Cook County and at the rate established for general merchandise in all other areas of the metropolitan region that are subject to the tax as provided in 70 ILCS 3615/4.03).
The amended regulations are 86 Ill. Adm. Code §§ 130.311, 130.745, and 130.801.
Cultivation
The privilege of cultivating medical marijuana in Illinois is also taxed, at a rate of 7% of the sales price per ounce. Learn more about the Medical Cannabis Cultivation Privilege Tax.
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