How does Illinois spend its millions in marijuana tax revenue?

Marijuana

Total sales of marijuana in Illinois reached nearly $135 million in March, with $101 million coming from Illinoisans and nearly $34 million from out-of-state residents. | Photo courtesy of Illinois Policy

Illinois is in its fourth year of legal cannabis, and it’s meant millions in revenue for the state. But where do those tax dollars end up?

Four places. Here’s the breakdown.

Administrative expenses: This refers to costs for the agencies that carry out state cannabis laws

Reinvestment: Restore Reinvest Renew (R3) grant funds are designated for Illinois communities that have been affected by “violence, excessive incarceration, and economic disinvestment.”

Reinvestment money also goes to the Illinois Department of Human Services’ community services fund.

Statewide budget support: The Budget Stabilization Fund, also known as the “rainy day” fund, and general revenue funds get the same amount as community reinvestment receives each year.

Other distributions: 

  • Cannabis Expungement Fund, which helps people expunge previous “minor cannabis convictions” from their records.
  • Local Government Distributive Fund: An 8% share of the money left after administrative and expungement costs are taken out goes to local communities.
  • Department of Human Services’ Drug Treatment and Education fund

Total sales reached nearly $135 million in March, with $101 million coming from Illinoisans and nearly $34 million from out-of-state residents.

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