Retail Sales Tax Structure

QTA Consultants, Ltd.

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Retail Sales Tax Structure

Retail Sales Tax Structure – Sales to end users are subject to all state and local retailers’ occupation taxes

  • the state tax rate is 6.25% of the selling price,

  • local tax rates vary by location

The Cannabis Purchaser Excise Tax must be electronically reported to the IDOR under requirements that mirror those for cultivatorsPre-payments required 7th, 15th, 20th, last day of monthCannot be less that 22.5% of actual month sales or 26.25% of same month prior year?Bundling of cannabis sales with non-cannabis products is prohibited.

Country Cannabis Retailers’ Occupation Tax

Two new local retailers’ occupation taxes are imposed on sales to end usersCannabis County Retailers’ Occupation Tax collected and enforced by IDORThe tax can be imposed in .25 percent increments, and the maximum tax rate that may be imposed by a county depends on the seller’s location.Sales in an unincorporated area of a county may be taxed at a maximum rate of 3.75%Sales made in a municipality located in a home rule county, namely Cook County, may be taxed at a maximum rate of 3%Sales made in a municipality in a non-home rule county (every county other than Cook) may be taxed at a maximum rate of .75 percent

Municipal Cannabis Retailers’ Occupation Tax

The legislation also authorizes the imposition of the Municipal Cannabis Retailers’ Occupation TaxMunicipal taxes can be imposed in .25 percent increments up to 3 percent of gross receipts


Cannabis Purchases Excise Tax

This tax is imposed and collected by cannabis retailers on sales to end usersThe tax rate varies by the type of product, and in the amount of THCFlower below 35% THC — 10% Excise TaxEdibles — 20% Excise TaxConcentrates above 35% THC — 25% Excise TaxThe Cannabis Purchaser Excise Tax must be stated separately on customers’ bills

Financial Reporting

For Dispensing Organizations ONLY:(4) The dispensing organization shall file an annual compilation report with the Department, including a financial statement that shall include, but not be limited to, an income statement, balance sheet, profit and loss statement, statement of cash flow, wholesale cost and sales, and any other documentation requested by the Department in writing

Cannabis Cultivation Privilege Excise Tax

A tax of 7 percent is imposed on gross receipts of cannabis sales by cultivators and craft growers (Excise)Licensure by the state is required to be eligible to register with the IDORThe IDOR may set the selling price if it determines that a transaction is not an arm’s length sale

Cultivation Excise Tax

Cultivators may recover the tax by stating it as a separate charge on the bill to their customers.The right of reimbursement is a recognition that the tax is not is the responsibility of the purchaser it can’t be collected from a purchaser if not paid by the cultivatorThe tax is like locally-imposed retailers’ occupation taxes — the tax is on the seller with a right of reimbursement from the purchaserA purchaser with enough bargaining power could actually decline to reimburse cultivators for the tax

Other Licenses Tax

The next tier of the tax process applies to companies that infuse cannabis into other products, like edibles“Infusers” may be required by the IDOR to file information returnsInfusers are not subject to taxation — they are buying cannabis for processing and resaleThe requirement of information returns is a mechanism by which the IDOR can ensure that cannabis raised by cultivators and craft growers is not diverted to the black market

Retail Sales Tax Structure – Accounting Services in Chicago – Contact Us

Thank you for your interest in our services. We encourage you to contact us: to give us a call or send a message using the email form below. Have a great day and we look forward to the opportunity to show you why so many of our clients refer their friends, family and colleagues.We service: Chicago, Elmhurst, Oak Brook, Lombard, Wheaton, Downers Grove, Naperville, Bolingbrook, Romeoville, Lockport, Orland Park, Elk Grove Village, Schaumburg, Evanston, Carol Stream, Elgin, Northbrook.