Cannabis tax obligations in Chicago, Illinois could be as high as 41% by the summer after the Chef County Board of Commissioners authorized a 3% tax obligation on cannabis stores. The tax will be imposed on all persons participated in business of marketing cannabis, besides medical-only dispensaries.
Chicago has actually already intended a 3% tax obligation for sale and also state tax obligations run from 10-25% depending upon strength; and all marijuana items lug typical sales tax, which in Chicago is 10.25%. As soon as the new 3% tax-- the highest possible county tax permitted under the state law-- is considered, the tax obligation rate for items with the higher rates of THC will certainly be 41.25%. The commission is expected to authorize those actions.
How does marijuana tax differ?
The majority of states tax obligation marijuana as a percent of the list price (table 1). These prices vary from 10 percent in Nevada to 37 percent in Washington. California, Colorado, Massachusetts, and Oregon likewise make use of these taxes, which are similar to a retail sales tax obligation the customer pays on the acquisition and the merchant pays to the state. Michigan's legislature will set up its tax obligation system, yet the ballot effort required a 10 percent excise tax on retail sales. Areas can likewise impose an added tax obligation in some states, primarily as an excise tax on retail sales.
Colorado and also Nevada in addition have a tax on the wholesale transaction in between farmers and representatives or retailers. The assumption is that some or all of these wholesale taxes are passed through to the consumer through greater purchase prices-- similar to exactly how alcohol taxes function. Alaska as well as California additionally has a tax at this stage of production but tax marijuana per ounce instead of as a percent of price (comparable to a cigarette tax).
Some states likewise levy their basic sales tax on the acquisition of marijuana in addition to the excise taxes.