All-time high: Illinois cannabis sales set new record

The state of Illinois has produced a new record high in adult use cannabis sales for 2023, exceeding $1.6 billion.

The Illinois Department of Financial and Professional Regulation announced the new record Thursday, noting new records were also set in sales to in-state residents and the number of items sold, with that total increasing more than 15% compared to 2022. Sales taxes collected at Illinois adult use cannabis dispensaries totaled $417.6 million in 2023, per the Illinois Department of Revenue.

“From day one, my administration has put equity first to build the most accessible cannabis industry in the nation,” Gov. JB Pritzker said in Thursday’s release. “Our work will continue to repair past harm while providing opportunities for communities across the state and creating a more prosperous future.”

“The legalization of adult use cannabis was the start of uplifting the communities most impacted by the failed war on drugs,” said Lt. Gov. Juliana Stratton. “The benefits from these sales will be used to continue investing in our economic growth in historically disinvested populations.”

In total, 42,124,741 items were sold in Illinois adult use cannabis dispensaries in 2023. In addition, Illinois resident sales totaled $1,226,855,768.68, which represents an increase of more than 14% from 2022 and is also higher than the growth experienced in the previous year.

This included a new record for sales in a month, as December’s sales totaled almost $154 million, exceeding the previous record of December 2022 by more than $10 million. As additional states join Illinois in legalizing adult use cannabis, sales to out-of-state residents totaled $408,126,252.05 in 2023, a decrease of 14%.

“We are thrilled to see the Illinois cannabis industry continue to grow and generate significant tax revenue for the state,” Charles Bolden, owner of Moline’s new Revolution Dispensary, said Thursday.

“Revolution Dispensary Moline contributed to the new monthly sales record in December, and our grand opening and first month of sales have exceeded expectations. The Moline team is a wonderful group of people and they are proud to serve the local community and to have played a part in this historic growth.”

“Cannabis tax has been a big source of income not only for local communities but also for the state,” Sean Molina, Revolution’s vice president of business operations, said at the Dec. 8 opening. “It outpaces alcohol at this point from the state perspective. It’s going to bring that aspect to the community and on a yearly basis now, and revenue that may have not necessarily been fully realized in some communities. I think it can only benefit the communities at large.”

Revolution Dispensary, 4301 44th Ave., Moline, opened at the former location of West Music off John Deere Road. It is Moline’s second cannabis dispensary, after Terrace Cannabis, 2727 Avenue of the Cities.

Moline Mayor Sangeetha Rayapati said the cannabis tax ordinance was passed by the Moline City Council in 2020 but it was not filed with the state at that time.

Because of the city’s filing mistake, the state can’t collect tax revenue until July 2024. Moline had projected anywhere from $300,000-$500,000 in cannabis tax revenue for the next budget year and they are hoping to get access to the tax money sooner.

Revolution says it is generating state tax revenue on Moline cannabis sales, and the city is only prevented from collecting its 3% local municipal excise tax.

“To my understanding, the filing delay just means that Moline will not be able to access the funds until July of this year, but once the ordinance is approved, Moline will be able to access the local municipal tax revenue that is currently being generated by the stores,” Revolution spokeswoman Victoria Mendicino said Thursday.

IDFPR’s complete adult use cannabis monthly sales tracker may be found online here.

“These statistics show encouraging progress that is a testament to the hard work by the Pritzker Administration, lawmakers, and stakeholders in ensuring we create a process that’s accessible to everyone, no matter their gender, race, or where in Illinois they call home,” IDFPR Secretary Mario Treto, Jr. said in Thursday’s release.

“I’m proud of the simplified application process we’ve created to ensure an inclusive cannabis industry and look forward to welcoming even more professionals to the most equitable industry in the country,” he said.

There are currently 177 adult use cannabis dispensaries in Illinois, including 67 social equity dispensaries that have opened their doors. One hundred thirty-three applicants selected in the 2022 social equity lotteries are still in the process of receiving their full dispensary licenses from IDFPR, as are 55 applicants selected in the Social Equity Criteria Lottery in 2023. The Department will continue to issue full adult use cannabis dispensary licenses as applicants continue to meet the final licensing criteria.

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