Local News

Board Adopts Ordinance Taxing Cannabis Sales

Thu, 12 Sep 2019 10:52:00 CDT

The Montgomery County Board adopted an ordinance on Tuesday, Sep. 10, establishing a County Cannabis Retailers' Occupation Tax.

"Cannabis is coming," said Finance Committee Chair Megan Beeler, adding that her committee's recommendation is that county tax it. Illinois has allowed each county to set the rate at which they tax, up to 3.75 percent for unincorporated areas and 3 percent in municipalities.

The recommendation of the finance committee was to tax at the full amount. Beeler said the state will be taking the majority of the tax money to run the cannabis program. From the amount left over, she said 8 percent will be divided amongst all Illinois counties.

Sheriff Rick Robbins said he doesn't believe the board will have a lot to worry about as far as how the tax revenue is allocated. He said he has attended many of the informational meetings about cannabis legalization, and Montgomery County's share of the revenue will likely be small.

According to the adopted ordinance, the county will tax 3.75 percent of the gross receipts from cannabis sales made in unincorporated areas, and 3 percent of the gross receipts of sales made in a municipality. The motion passed, 20-0.

The next Montgomery County Board meeting is scheduled for Tuesday, Oct. 8, at 5:30 p.m.