Peoria City Council approves first reading of recreational marijuana sales tax ordinance

Local News

PEORIA, Ill.– Peoria City Council discussed an ordinance that will allow a 3% sales tax on recreational cannabis in the city.

City leaders say allowing recreational marijuana to be distributed through licensed establishments could increase sales tax revenues. City Manager Patrick Urich said as the state law is written now, municipalities won’t be able to collect recreational marijuana sales tax revenue until September 2020.

However, some cities in Central Illinois hope that by approving sales tax ordinances before October they may be able to collect the sales tax sooner. In that case, they’d be hoping for a trailer bill from state legislators changing the effecting sales tax collection date to Jan. 1, 2020.

Currently, the city has one licensed medical cannabis dispensary.

If medical dispensaries get a certain license, the dispensary may begin selling recreational cannabis and related items on Jan. 1, 2020.

Councilman John Kelly said adding an additional tax to the current sales tax, which is 9%, will be a win for the black market. Kelly believes increasing the cost of marijuana will also increase the amount of illegal cannabis sold in the city.

“I dont want to encourage that element in our city and I think one way to reduce the amount of illegal cannabis being sold is to get off this tax train.”

Councilman John Kelly, Peoria City Council

The adoption of this ordinance does not affect whether the City will approve the sale of recreational marijuana. Rather, if sale is approved, the City will be able to collect sales taxes as soon as they can.

Neighbors will be able to join in the discussion at a recreational cannabis meeting hosted by the city of Peoria.

The first meeting will be Monday, Sept. 16 at ICC Peoria Campus Student Center. The second meeting will be Monday, Sept. 23 at the Frank Campbell Community center. Both will begin at 6 p.m.

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