Tax revenues from recreational marijuana will net the city $3.5 million next year, according to Chicago’s Mayor Lori Lightfoot’s proposed $11.65 billion budget which was announced earlier this week.
This number represents four months of expected tax collections because the state law that legalized pot sales prevents cities and towns from collecting taxes on those sales until next September.
According to the budget proposal, during those last four months of 2020, a local 3% excise tax on pot sales would bring in $1 million and increased sales tax revenue would drum up the rest of the cannabis cash.
Lightfoot has also projected in the past that recreational pot sales will eventually bring in $10 million in annual tax revenues, which is in line with the budgeted figures.
The Mayor’s budget also says that the Department of Business Affairs has to devise a regulatory framework for the local recreational cannabis industry by the start of next year.
“This structure will ensure that legalized cannabis is rolled out effectively, safely and equitably while enhancing our local economy and neighborhood business,” the budget proposal reads.