Cannabis has proven to be extremely lucrative for states with legal markets. In 2021 alone, states collected more than $3.7 billion in recreational cannabis taxes, a 34% jump from the taxes legal states received the previous year. Illinois, which launched recreational cannabis sales in January 2020, has seen impressive sales in recent months. For FY 2022, the state has recorded around $1.5 billion in cannabis sales compared to $1 billion last year.
Illinois collected a total of $445.3 million in taxes from cannabis sales, a nearly 50% increase in revenue compared to the 2021 fiscal year when it collected $297 million. In addition, $146.2 million in cannabis tax revenue was deployed to local governments, up more than 70% compared to the previous year. On the social justice front, state regulators approved 149 social equity cannabis retail licenses.
This is three times the number of cannabis storefronts that are currently operational and will allow the state to significantly expand access to cannabis in the coming months, which could, in turn, impact cannabis sales and tax revenue numbers. In a press release, Governor J.B Pritzker noted that Illinois has done more than any other state in the country to put social justice and equity at the center of its cannabis industry.
Furthermore, he said that the state has made efforts to ensure that communities that were disproportionately affected by the war on drugs have been given the opportunity to participate in the cannabis industry. Thanks to the 50% increase in cannabis sales, Illinois saw a significant increase in cannabis tax revenue, Pritzker said, with a portion of every cannabis tax dollar being reinvested into these communities.
Illinois state law requires that 25% of cannabis sales tax revenue go toward programs designed to support communities that were historically impacted by the failed war on drugs, were economically distressed, or have higher-than-normal rates of violence. Senate Majority Leader Kimberly A. Lightford said that the recreational cannabis market has been a boon for Illinois’ economy, providing consistent cash flows to essential programs for mental health, violence prevention, and local governments.
According to State Representative Jehan Gordon-Booth, the cannabis taxes are vital and provide much-needed resources for marginalized and disenfranchised communities that suffered the brunt of the drug war. He noted that state policymakers are aware of the pain and trauma these communities have experienced and that they are working to repair the harms of the drug war.
These efforts underscore just how impactful it is to open legal markets for marijuana so that companies such as American Cannabis Partners can serve the population and make their contribution towards community development.
NOTE TO INVESTORS: The latest news and updates relating to American Cannabis Partners are available in the company’s newsroom at https://cnw.fm/ACP
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.CNW420.com
Do you have questions or are you interested in working with CNW420? Ask our Editor
CNW420 is part of the InvestorBrandNetwork.