Illinois and weed
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cybrguy
Putin is a War Criminal
Steady Marijuana Sales Mean Security For Illinois Cities With Dispensaries
By Eric Schmid • 14 minutes ago
Collinsville can depend on the sales tax revenue it collects from Illinois Supply and Provisions since cannabis sales in Illinois are not slowing down even during the coronavirus pandemic. The city currently collects a 2.25% sales tax on every recreational marijuana sale, and that will jump to 5.25% on July 1.
“It’s a backstop,” said Collinsville City Manager Mitch Bair. “This is a revenue source that has not been impacted and it’s actually gone up.”
In April dispensaries across the state sold $37 million of recreational cannabis, their second best month behind nearly $40 million in January when recreational marijuana became legal in the state. Illinois Supply and Provisions consistently sells the most of any dispensary in the state, between $4.5 and $5 million a month, Bair said.
He anticipates the city will bring in between $1.5 and $2 million this year just from taxes on marijuana sales. Originally that money was split between capital projects, like stormwater, street and other infrastructure improvements, and operations, Bair said.
“To help offset the cost of taking over the Gateway Convention Center and create a parks department,” he said. “In a normal period after this pandemic and even before this pandemic, it has the ability for us to go above and beyond and really transform some services we can offer the community.”
Now revenue from marijuana sales will go entirely to pay for the cost of operating services like police, fire, permitting and others that need to stay open, Bair explained.
“Being able to plug that gap is probably going to be the critical difference in, ‘Does that get us through, or do we have to furlough employees and not cut the grass at the parks?’” he said. “In times like this, it’s a really good safety net.”
Cities around the region, including Edwardsville, Fairview Heights and Belleville, have laid off workers, or considered doing so because of the economic downturn caused by the coronavirus. But Collinsville hasn’t had to make any of those decisions yet, thanks to its marijuana dispensary.
“It represents that ability for us to make sure we can really offset the drops in the other revenues, especially when we budgeted for half of it to go to capital projects,” Bair said.
Marijuana will likely take on a similar stabilizing role in budgeting at the state level, said Bethany Gomez, managing director of Brightfield Group, a market research firm focused on the legal cannabis industry.
“As the state starts to get COVID under control more, there will be a very distinct look at budgeting and a need for additional revenue sources,” she said. “People don’t want to go back to a black market environment and they certainly don’t want to sacrifice their tax revenue.”
Gomez expects legal marijuana will be one of the consistent revenue sources the state leans on and pushes to develop when its economy reopens.
“It’s a really big win for the industry that it has gone from illegal to essential in a matter of weeks,” she said.
It’s difficult to tell exactly how much sales tax revenue local cities are losing right now because the state processes the tax and then disburses money back to municipalities, Bair explained.
“The normal delay is about a month,” Bair said. “Right now the governor is allowing some businesses to defer their sales tax payments to the state and then the state’s delaying those payments to us.”
Even without the data, Bair expects the dispensary will be the city’s top single revenue generator ahead of the Laura Buick GMC dealership and a few big box stores.
“It’s pretty obvious that we’re going to see Illinois Supply and Provisions take that lead spot by a pretty wide margin,” he said. “We’re going to be closer to that $2 million mark for sure.”
By Eric Schmid • 14 minutes ago
-
Cannabis plants grow inside Ascend Illinois indoor facility in Barry, IL. Ascend owns Illinois Supply and Provisions in Collinsville, which is providing the city with solid revenue during the pandemic.
Collinsville can depend on the sales tax revenue it collects from Illinois Supply and Provisions since cannabis sales in Illinois are not slowing down even during the coronavirus pandemic. The city currently collects a 2.25% sales tax on every recreational marijuana sale, and that will jump to 5.25% on July 1.
“It’s a backstop,” said Collinsville City Manager Mitch Bair. “This is a revenue source that has not been impacted and it’s actually gone up.”
In April dispensaries across the state sold $37 million of recreational cannabis, their second best month behind nearly $40 million in January when recreational marijuana became legal in the state. Illinois Supply and Provisions consistently sells the most of any dispensary in the state, between $4.5 and $5 million a month, Bair said.
He anticipates the city will bring in between $1.5 and $2 million this year just from taxes on marijuana sales. Originally that money was split between capital projects, like stormwater, street and other infrastructure improvements, and operations, Bair said.
“To help offset the cost of taking over the Gateway Convention Center and create a parks department,” he said. “In a normal period after this pandemic and even before this pandemic, it has the ability for us to go above and beyond and really transform some services we can offer the community.”
Now revenue from marijuana sales will go entirely to pay for the cost of operating services like police, fire, permitting and others that need to stay open, Bair explained.
“Being able to plug that gap is probably going to be the critical difference in, ‘Does that get us through, or do we have to furlough employees and not cut the grass at the parks?’” he said. “In times like this, it’s a really good safety net.”
Cities around the region, including Edwardsville, Fairview Heights and Belleville, have laid off workers, or considered doing so because of the economic downturn caused by the coronavirus. But Collinsville hasn’t had to make any of those decisions yet, thanks to its marijuana dispensary.
“It represents that ability for us to make sure we can really offset the drops in the other revenues, especially when we budgeted for half of it to go to capital projects,” Bair said.
Marijuana will likely take on a similar stabilizing role in budgeting at the state level, said Bethany Gomez, managing director of Brightfield Group, a market research firm focused on the legal cannabis industry.
“As the state starts to get COVID under control more, there will be a very distinct look at budgeting and a need for additional revenue sources,” she said. “People don’t want to go back to a black market environment and they certainly don’t want to sacrifice their tax revenue.”
Gomez expects legal marijuana will be one of the consistent revenue sources the state leans on and pushes to develop when its economy reopens.
“It’s a really big win for the industry that it has gone from illegal to essential in a matter of weeks,” she said.
It’s difficult to tell exactly how much sales tax revenue local cities are losing right now because the state processes the tax and then disburses money back to municipalities, Bair explained.
“The normal delay is about a month,” Bair said. “Right now the governor is allowing some businesses to defer their sales tax payments to the state and then the state’s delaying those payments to us.”
Even without the data, Bair expects the dispensary will be the city’s top single revenue generator ahead of the Laura Buick GMC dealership and a few big box stores.
“It’s pretty obvious that we’re going to see Illinois Supply and Provisions take that lead spot by a pretty wide margin,” he said. “We’re going to be closer to that $2 million mark for sure.”
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strech
Well-Known Member
Not much to see at the shops here around Chicago. Everything is prepackaged and not much for displays. You can't smell or even see it before you buy it. As a rec user supply is even more limited and half the shops have closed rec sales due to covid19. They all seem to push you to get a med card. Had one "salesmen" even tell me everyone can get a medical card. Well not all of us are sick or in pain.
Still with taxes and the massive markup on items. I find it hard not to keep buying on the street. My street dealer sells me a oz from $140-$175. The dispensary close to me doesn't even have flower available for sale today. When they do you can buy a gram for $30.
Still with taxes and the massive markup on items. I find it hard not to keep buying on the street. My street dealer sells me a oz from $140-$175. The dispensary close to me doesn't even have flower available for sale today. When they do you can buy a gram for $30.
cybrguy
Putin is a War Criminal
I'm paying almost twice your price from my guy also in Chi, but that is still half of the retail price in dispensaries. And the dispensaries have no incentive to lower prices. Maybe after the next (delayed) round of openings.
If you are geting top shelf for $140 in northern Illinois you are doing very well.
If you are geting top shelf for $140 in northern Illinois you are doing very well.
cybrguy
Putin is a War Criminal
It's a new Rise in Niles. It's not really urgent for me that it opens as prices will be to nutzo till next year at least. Still too few growers and too few retail stores in this state. I just like the idea of having one open nearby. And I'll allow them to take advantage of me for one cart to have something truly stealth when I need it. 
FlyingLow
Team NO SLEEP!
I really don't know how MMen has been able to open new stores, much less stay in business. One of the historically worst stocks EVER!
strech
Well-Known Member
They seem to have a cheaper price on more items then say Sunnyside. But they never have flower.( I buy flower on the street) Concentrates have been limited to 1 gram per customer. Makes me have to go back too soon. Edibles only place I've found close to me that has 100mg for $20. A couple of time Sunnyside had the natures grace bars for $20 but they have been jacking prices on everything.
None of the dispensarys seem to be able to keep a steady stock of concentrates or cheap edibles. Which is the only thing I buy from the store.
cybrguy
Putin is a War Criminal
Other than one gram of crumble I got when legal first opened here, all I ever buy is flower. I WILL pick up a cart of oil probably sometime soon just because the few times I tried it I liked it and it is a stealthy way to buzz, but it's current prices put it out of reach for me. I have ordered a battery just so I have it when I do get a cart.