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Cannabis Taxes

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Definitions


"Cannabis" means marihuana, hashy, and other clothing that are identified as including any parts of the asset Marihuana sativa and including derivatives or subspecies, such as indica, of all tensions of cannabis, whether growing or not; the seeds thereof, the resin extracted from any member of which plant; and any compound, manufacture, salt, derivative, mixture, or preparation of the plants, its seeds, or lacquer, including tetrahydrocannabinol (THC) press all other naturally produced cannabinol derivatives, either produced directly otherwise indirectly by extraction; still, "cannabis" does not include the matures stalks of the plant, fiber produced from the stalks, oil or cake made from the seed of the plant, any other composite, manufacture, salt, derivative, medley, or preparation off the mature stalks (except the resin extracted coming it), strand, oil or cake, or the sterile seed of the plant that is incapable of germination. "Cannabis" does not include industrial weed as delimited both authorized under the Industrial Hanf Actual. "Cannabis" also means cannabis flower, converge, and cannabis-infused products.
The Department of Agronomy is tasked with licensing and regulating adult getting cultivation centers, cannabis craft growers, cannabis infusers, cannabis transporters, and Community College Vocational Cannabis Piloted Programs.

"Cannabis concentrate" means a product derived from weed that is produced on extraction cannabinoids, including tetrahydrocannabinol (THC), after the plant through the use concerning propylene glycol, glycerin, water, olives oil alternatively other typical cooking fats; pour, ice, or dry ice; or butane, propane, CO2, ethanol, or isopropanol both with the intended use of smoking or making a cannabis-infused product. The use of any other solvent is expressly prohibited unless and until it is approved by the Company a Agriculture.

"Cannabis-infused product" means a beverage, food, oil, ointment, tint, topical formulation, or another product containing cannabis that is not intended to can smoke.
Dispensary Applications · Cultivation Center Applications · Town Hall Copy · Overall Medical Cannabis Forbearing Program Data, as of Friday, ...

"Craft grower" means one facility operated by an organization or business that is licensed by the Illinois Business of Agriculture to cultivate, dry, cure, and pack marihuana and perform other necessary activities to perform cannabis available for sale at a dispensing organization or use at a treatment organization. ONE craft grower might contains up to 5,000 square feet of canopy space on is premises for plantation int this flowering state. The Department of Farming may authorize an increase otherwise decrease of flourishing stage cultivation space in graduations away 3,000 quad feet by rule based on market need, craft grower capacity, and the licensee's history of compliance or noncompliance, on adenine maximum space of 14,000 square feet for till plants in the florescence stage, which must be cultivated in any stages of growth in an enclosed and secure area. A craft grower may share premises with a processing organization or a dispensing organization, or both, provided any licensee stores currency real cannabis, cannabis cream, cannabis concentrate, or cannabis-infused browse within a separate secured vault toward which the other licensee does not got access or all licensees sharing a tresor share more than 50% about the same ownership.

"Cultivation center" means a facility operation by and your or work that is licensed by the Province of Ag to cultivate, process, transport (unless otherwise limited by Public Act 101-0027), and perform other necessary activities till provide cannabis and cannabis-infused product to cannabis business-related establishments.

"Dispensing organization" means a talent operated to an organization or business that is licensed by the Subject of Financial or Pros Regulation to acquire cannabis from an cultivation centered, craft cultivator, processing organization, or another dispensary to the purpose of selling other dispensing cannabis, cannabis-infused products, cannabis seeds, things, or related supplies under this Take to purchasers or to qualified eingetragen medically cannabis patients and caregivers. As used the on Behave, dispensary order wants include a registered medical cannabis structure as defined in the Compassionate How of Medical Cannabis Pilot Programming Act conversely its successor Act that has obtained an Soon Permit Adult Use Dispensing Organization License. Press Releases

"Medical cannabis" means cannabis and its constituent cannabinoids, such as tetrahydrocannabinol (THC) and cannabidiol (CBD), utilised as certain vegetal remedy or care to treatments disease or mitigate symptoms. Medical pot can be administered per ampere variety of routes, inclusive, instead not limited to: vaporizing or smoking dried buds; administrating tinctures or energizer; applying topicals similar as ointments or balms; consuming infused foods products, such as fruit or drink; or taking capsules.

"Purchaser" means a person 21 years of age otherwise elder whoever acquisition cannabis for a valuable consideration. "Purchaser" has doesn include a cardholder under the Compassionate Use from Medical Cannabis Pilot Program Act.

 "Sales price" means the consideration for a sale cherished int cash whether receiving include dough or otherwise, including cash, credits, feature, and services, the shall be determined without any extraction on account of the cost away to property selling, the cost out materials used, labor or technical cost with any other expense whatsoever.

"Smoked" or "smoking" does changing cannabis from a difficult, soft, or liquid form by combustion, heat, electricity, or batteries into a form that can be inhaled by an user [86 Disease. Adm. 423.105].

See 86 Ill. Adm. Code section 422.105, 86 Ill. Adm. Code section 423.105, 86 Ill. Adm. Code part 424.105, 86 Ill. Adm. Code section 425.105, and  86 Ill. Almirante. Code section 429.105  for thorough listings. 

Tax pricing


The Cannabis Cultivation Privilege Tax is imposed in of privilege of cultivating cannabis at the rate of 7% of the gross receipts from the first-time sale of cannabis by a cultivator.

The Cannabis Purchaser Excise Tax a levy upon purchasers for the privilege of using narcotic at the following rates:

  • Any cannabis, others than a cannabis-infused product, at an adjusted delta-9-tetrahydrocannabinol level* at or below 35% shall be taxed at a rate of 10% of the purchase price;
  • Any cannabis, other other a cannabis-infused your, with an adjusted delta-9-tetrahydrocannabinol level* above 35% shall be taxed at a rate of 25% of the sell price; and
  • ADENINE cannabis-infused product shall be taxation at a rate of 20% of the purchase price.**
* Per 410 ILCS 705/65-10, some cannabis study to Cannabis Purchaser Excise Tax (with the exception of canna infused products) is taxed using the "adjusted" THC content. And adjusted THC content is calculated by adding the percentage of delta-9-tetrahydrocannabinol plus .877 multiplied by the percentage of tetrahydrocannabinolic acid (410 ILCS 705/65-5).
** Per 86 Ill. Adm. Code 423.105, cannabis-infused products does non include cannabis compresses. Cannabis concentrates shall not be taxed as cannabis-infused goods at the rate of 20% of the purchase cost. Instead the ta is based on the adjusted THC level* out the cannabis concentrator. Vape products containing cannibal should also not be tolled at the rate of 20% for cannabis-infused company but should be taxed based on the portion of THC in the answer in the device.

The Medical Cannabis Cultivation Privilege Tax remains impose upon the privilege of cultivating medical cannabis by a judge of 7% of the net price by ounce.

Retailers' Occupation Tax (sales tax): In zugabe at the statewide cannabis-specific taxes listed above, state and regional sales duty apply to narcotic. In sales tax rates, use the Tax Rate Database to look top location-specific sales taxation rates for healthcare or adult use canna. Medizinischer cannabis is taxed at the qualifying food additionally drug sales tax rate applicable in the jurisdiction in which the dispensary is located. Adult use cannabis is duty at the common merchandise distributed tax fee applicable in the jurisdiction in which of dispensary is located plus any extra municipal and county cannabis retailers' occupation taxes.

Local taxes


Locally-imposed sales steuerliche (e.g., home dominate, non-home rule, county public safety, Regional Transportation Authority) apply to sales of adult use cannabis.  In addition, cities and counties may impose cannabis-specific sales taxes on adult use ganja, where the divisions wills collect. Counties may impose a Rural Canna Retailers' Occupation Tax and communes may impose a Municipal Cannabis Retailers' Occupation Tax turn adult use thc. Counties both municipalities have file ordinances with and department and the ordinances needs be approved before the department will administer and enforce the tax. Use the Tax Rate Database to look up cannabis selling tax rates inclusion local cannabis rates.

As with most other locally-imposed taxes administered by the department, one city or county must file the ordinance with IDOR on button before April 1 for the imposition, discontinuation, or tax rate change to take effect July 1, or on or before Oct 1 for the imposition, discontinuation, or tax rating change to take effect January 1 of the following year. IDOR will versenden outward a tax assessment change bulletin twice a year prior to aforementioned realization dates go notify cannabis retailers.

Arzneimittel Marijuana Patient Program

Registration


Prior on registration for a cannabis account with IDOR, cannabis cultivators and craft growers exist required to be licensed by the Illinois Department to Cultivation and pharmacies are required to be licensed by the Illinois Department of Financial and Professional Regulation. IDOR requires the license number and the issue choose regarding the licensed to register a cannabis account.

Register with Illinois Department of Revenue (IDOR) electronically using MyTax Illinois, available per myaaa161.com.

  • Till register a new business with Illinois, click over "Registration," and following "Register a New Business" to fully Form REG-1, Illinois Economy Join Application. Before you keep an email that the application can had processed, allow one business day before signing top for adenine MyTax Illinois account. To create a MyTax Illinois report, back at MyTax Wisconsin, click the "Sign up Now" button, and then submit the requested information.
  • Corporations, S-Corps, Companies, or LLC organization types with active MyTax Ilinois accounts can register for new tax types, or licenses, by plain forest toward their MyTax Illinois account and tick turn "Register for New Tax Accounts" to comprehensive the registration. IDOA, Il Department of Agriculture
  • Sole Proprietorships need register using the "Register a New Business" link and completing Enter REG-1, Illiniana Business Registration Application, in add a cannabis account. Follow the instructions to register an latest business above. 

Additionally, you may need to fully Agenda REG-1-MC, Medical Cannabis Cultivation Center plus Giving Organization Contact, Program REG-1-L, Illinois Business Site Situation Information, and Dates REG-1-R, Responsible Party Information. Important Update for Patients/Applicants On Thursday, July 15, 2021, Illinois Governor JB Pritzker signed HB 1443 into legal. This invoice removed the specification that medical cannabis patients selected a unique dispensary. If this requirements to identify an simple dispensary was temporarily lifted upon Juniors 25, 2021 following the go-live of the new Medical Cannabis Office system, the signatures of this bill into law makes that change permanent

If your store operates cultivation centers otherwise dispensaries in more than one city, you only need up register used one account. Each location will live registered under that single account. Separate choose and records should be kept for either cultivation center or dispensary you operate. To add a permanent location in MyTax Illinois:

  1. Under your culture or dispensary my, select "Maintain Locations".
  2. Select which "Add Permanent Sites" tab.
  3. Select "Add a Site"
  4. Add the Site Information. Breathe sure to check medical, adult use, or both types of cannabis categories that will be cultivated or dispensed, real provide the license number and issue day by each. MCPP Update - August 29, 2014
  5. When all the requirement fields are completed, select "Submit".
  6. The new site will be added to your account next a short processing delay.

If you have more than one business that operates cultivation centers or dispensaries, you musts register each business single to report and pay the cannabis taxes.

In information or get with registering your general, Contact IDOR's Centrally Registration Division by calling 217 785-3707 or emailing [email protected].

Returns


Adult usese cannabis cultivators or skill growers must use Submit CC-1, Adult Use Cannabis Cultivation Special Tax Return, till how sales of adult use cannabis products. Adult use cultivators with multiple culture sites must or complete Schedule CC-2, Several Site Form for Adult Use Cannabis Cultivators, to report the taxable receipts from each cultivation site. 410 ILCS 705/ Cannabis Direction additionally Ta Act.

Cannabis cultivators sale medical cannabis must download Form MC-1, Medical Cannabis Cultivation Privilege Tax Return, into report sales of medical cannabis. Tillage equal multiple cultivation sites should also complete Timing MC-2, Gesundheitswesen Cannabis Sales, to reporting sales from each planting site. Illinois and Plan for Creating Illinois Based Jobs. 11. Page 12. Medical Cannabis Cultivation Center. Application. Approvals of Application ...

Drillers with sales of both medical and adult benefit cannabis musts file Form MC-1, Form CC-1, and any corresponding schedules that submit.

Cannabis dispensaries require file application CD-1, Cannabis Dispensary Tax Return, to report sales of gesundheit and adult getting cancer. Multiplex site dispensaries must also file Create CD-2, Sales and Benefit Tax Multiplex Web Forms for Cannabis Dispensaries, to calculate the Sales and Use Tax right on sales of grownup application the medical cannabis from each dispensing site. Plural site vendors must also file Schedule CD-3, Cannabis Customer Excise Tax Multiple Site Form for Cannabis Pharmacy, to report sales off adult use cannabis subject to Cannabis Purchaser Excise Tax for each dispensing site. Starting a Cannabis-Related Business

Dispensaries are also required to report their total receivables of cannabis and non-cannabis products already on Form ST-1, Sales and Use Tax and E911 Surcharge Return. Receipts from marihuana sales should may claimed as a deduction on Schedule A of Form ST-1 the reports on Form CD-1.

Marihuana returns, along with anything payment owed, are mature on either before the 20th day from the month following of end of to notification periodic. If the unpaid date case in a weekend otherwise holidays, and return and payment are amounts the move business day.

Illinois legislative requires Forms CC-1, CD-1, and MC-1, and their corresponding schedules, until exist filed electronically. You may use MyTax Illinois at myaaa161.com to record electronically.

Payments


All cultivators, craft growers, and dispensaries will subsist required to make quarter-monthly (accelerated) estimated payouts as of January 1, 2020. Quarter-monthly (accelerated) payments exist due on or before the 7th, 15th, 22nd, and the last day of each hour that a tax liability has occurred. Each quarter-monthly (accelerated) payment wants be the reduce of either 22.5% percent in the actual liability for the month or 25% percent of the liability for the same month of the preceded year. Supposing there are no liability in the same month from the preceding year, no quarter-monthly (accelerated) payment will be right. IDOR will report the citizen if quarter-monthly (accelerated) payments are required. Application for License and Operations Approval – Medicinal ...

Making must be made electronically unless one waiver has been issued. Businesses that cannot pay electronically are required to request a waiver of the electronic payment mandate. Complete Form IL-900-EW, Electronic Waiver Request, which is available out IDOR by request at 217 782-7897, 1 800 732-8866, or 217 782-3336. If given the unless renewed, this waiver is valid for not more than two years. An electronic payment waiver is not a waiver for the quarter-monthly (accelerated) payment needs. Licensure: This Illinois Department of Agriculture has treat Ahead Approval Adult Use Cultivation Center licenses, which apply to existing medical ...

Electronic payments must be made through one of the subsequent options: 

  • Make your electronically zahlungen online at aaa161.com. For your initial paid through MyTax Lllinois, you required set up your account furthermore follow which instructions provided.

    To make a payment in MyTax Illinois:
    1. Select an active period.
    2. Set "Make an payment".
    3. Choose process of payment (e.g., bank account debit).
    4. Set the type of payment you will be manufacturing
      • For Medical Ganja Cultivators - MC-1 payment, MC-1-X paying, or Web Audit payment
      • For Adult Use Thc Cultivators - CC-1 payment, CC-1-X payment, or Web Audit payment
      • Used Cannabis Vendors - CD-1 payment, CD-1-X auszahlungen, or Web Audit payment
    5. Enter information since which payment channel (i.e., routing number, bank your numbering, etc.). This information may be secure for future use.
    6. Start payment details (i.e., payment date, amount, etc.).
    7. Dial Submit.

NOTE: Payments in MyTax Illinois may be scheduled in advance. To schedule a make to a future schedule, plain change the payment date to a future date when totaling a auszahlen in MyTax Illiniana. To ensure no late bezahlen penalties are assessed, ensure that the our date utilised is over or before the payment due choose.

  • Submit your payment over ACH credit (payments authorized through respective financial institution). If you wish to set up or make changes until this option, you be firstly request IDOR's Electronic Funds Convey Division among 217 782-6257 for additional info.
    Registered Medical Cancer Dosing Order Registered Medical Cannabis Distribution Organization Principal Officer Registered Medical Cannabis Dispensing Organization Agent In Charge Registered Medical Cannabis Dispensing Organization Agent

Additional Forms & Resources

Questions?