The new Illinois tax on legalized marijuana has devotee’s
enthusiasm waning.
The long-awaited legalization of marijuana in the state of
Illinois was met with both jubilation and judgment as Chicagoans got hit with
the second-largest tax rate in the country.
In some cases, in Chicago, purchasers can see a 41% tax on marijuana
products. This, in addition to the 7% sales tax.
On Jan 1, as the lines wrapped around Chicago dispensaries,
many were unaware that legal marijuana would run 30%-50% more expensive than
what you'd pay on the black market. The
taxation is also dictated by how much THC is present, which is the chemical
that produces psychological effects. If
the THC levels are above 35%, you'll be tax 25%. Also, charges vary based on which composition
you choose. In flower form, you'll see a
10% tax and edibles, 20%.
Many purchasers are asking why there are such steep weed
taxes, and most are keeping their street dealers on call. Much of the issue can be found in the speed
at which legalized pot was rolled out.
While for the enthusiast, it seemed like a lifetime, without a fully
developed medical marijuana market, recreational cannabis came too
quickly. While many states boast an
extensive list of ailments warranting a medical card such as insomnia or
anxiety, Illinois list was much shorter.
As pot legalized, the actual demand was felt as droves of user's both
medical and recreational, visited their local dispensaries.
While supply and demand continue to fuel retail prices, it
does not influence Illinois tax on marijuana products. Many predict wholesale costs coming down as
supply needs are leveled off, which will help accommodate for the tax burden.