Illinois Marijuana Tax Revenue Outpaces Liquor Amid Record Sales

CHICAGO — Illinois marijuana sales set another record high last month with more than $150 million worth of recreational and medical cannabis sold in the state's dispensaries, state data shows.

For the second month in a row, state tax revenue from adult-use cannabis exceeded the tax money brought in from liquor in April, according to data from the Illinois Department of Revenue.

In the first four months of 2021, recreational weed has generated about $121 million in state revenue, compared with nearly $99 million for liquor.

Those figures do not include any additional local taxes.

Sales data from state regulators shows Illinois residents spent about $80 million, before taxes, on recreational cannabis in April.

Out-of-state residents and medical cannabis patients each bought about $35 million worth of cannabis for the month.

Pre-tax recreational sales of nearly $115 million in April 2021 represented an increase of more than 200 percent compared to April 2020.

Wisconsin Gov. Tony Evers, whose state prohibits both medical and recreational marijuana use, said his state is losing out on hundreds of millions of dollars to its southern neighbor.

“Frankly I’m kind of tired of talking to the governor from Illinois,” Evers said in a video posted to social media. “Whenever I get with him, he thanks me for having Wisconsinites crossing the border to buy marijuana," Evers said of Gov. J.B. Pritzker. "The sales tax money goes to them instead of us.”

Evers, a Democrat, has faced resistance from the Republican-led legislature in his efforts to expand cannabis availability in his state.

Cannabis industry insiders have predicted the Illinois market will eventually grow to more than $2 billion a year.

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A year after the state's cannabis legalization law called for the first social equity applicant licenses to be issued, none have yet been released.

Illinois retail market remains limited to the holders of the 55 pre-legalization medical marijuana licenses — or whichever multibillion-dollar multi-state operator bought them out. Each license permits a second location.

Legal challenges to the state's lottery process, and executive orders issued by Pritzker that suspended licensing deadlines in the legalization law, mean the number of dispensaries statewide is effectively capped at 110 — the same number permitted in January 2020.

State regulators have said the application review process is continuing, after applicants last year were given an opportunity to correct deficiencies with their submissions.

State lawmakers, industry representatives and the Pritzker administration are continuing to negotiate legislative changes that could also change the licensing process.