Illinois earned more tax revenue from cannabis than alcohol in Q1 2021

Illinois collected more taxes from the cannabis who consumed alcohol for the first time in the first quarter of 2021, according to the official figures from the Department of State Revenue.

From January through March, Illinois generated approximately 86,537,000 $ (72 million €) in tax revenue from recreational cannabis, compared to 72,281,000 $ (60 million €) from alcohol sales.

Those who follow the cannabis market in Illinois won't be entirely surprised, as the state has consistently reported record sales, even in the midst of the pandemic. In March, adults spent 109,149,355 $ (91 million €) on recreational cannabis, marking the highest monthly sales since stores first opened.

Cannabis Revenue in Illinois

Last year, the state sold approximately $670 million worth of recreational cannabis, and more than 1 billion in the medical sector, and collected $205.4 million in tax revenue.

The government redistributes a portion of cannabis tax revenue to communities that have been disproportionately affected by the war on drugs.

The funds are part of the government program Restore, Reinvest, and Renew (R3), which was established under the law of Legalization of cannabis for adult use in Illinois. As part of this initiative, 25% in cannabis taxes are invested in this fund and used to provide disadvantaged individuals with services such as legal aid, youth development, community reintegration, and financial support.

This financial assistance is in addition to a comprehensive policy aimed at addressing the harms caused by the criminalization of cannabis. Governor J.B. Pritzker announced in December that his office had processed more than 500,000 delistings and amnesties for people with cannabis convictions on their criminal records.