Illinois Administrative Code
Title 86 - REVENUE
Part 423 - CANNABIS PURCHASER EXCISE TAX
Section 423.110 - Tax Imposed

Universal Citation: 86 IL Admin Code ยง 423.110

Current through Register Vol. 48, No. 38, September 20, 2024

a) Beginning January 1, 2020, a tax is imposed upon purchasers for the privilege of using cannabis at the following rates:

1) Any cannabis, other than a cannabis-infused product, with an adjusted delta-9-tetrahydrocannabinol level at or below 35% shall be taxed at a rate of 10% of the purchase price;

2) Any cannabis, other than a cannabis-infused product, with an adjusted delta-9-tetrahydrocannabinol level above 35% shall be taxed at a rate of 25% of the purchase price; and

3) A cannabis-infused product shall be taxed at a rate of 20% of the purchase price. [410 ILCS 705/65-10]

b) The purchase of any product that contains any amount of cannabis or any derivative thereof is subject to the Tax on the full purchase price of the product.

EXAMPLE: A dispensary sells a cannabis-infused product that contains 1/8 ounce of cannabis for $80. One-eighth of an ounce of cannabis normally sells for $30. The dispensary must collect $16 in Tax on the sales price of the infused product ($80 x .2 = $16).

c) The Tax is not imposed on cannabis that is subject to tax under the Compassionate Use of Medical Cannabis Program Act.

d) The Tax is not imposed with respect to any transaction in interstate commerce, to the extent the transaction may not, under the Constitution and statutes of the United States, be made the subject of taxation by this State.

e) The Tax shall not be imposed on any purchase by a purchaser if the cannabis retailer is prohibited by federal or State Constitution, treaty, convention, statute, or court decision from collecting the Tax from the purchaser. [410 ILCS 705/65-10]

Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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