Is the Illinois Cannabis Scarcity a Supply or Demand Issue?
Sign up for theBluntness newsletter for all your latest cannabis news.
Legalized Marijuana is an excellent thing for the state of Illinois. More and more states are realizing legal Marijuana and the growth of tax income. However, there is a shortage in Illinois for recreational users.
Illinois Stance on Recreational Marijuana
Illinois has legalized recreational cannabis on January, 1, 2020. Since then, the state has made roughly $20 million in its second week, which is pretty outstanding. Illinois does have some laws concerning cannabis purchases although, so let's dive into that.
The legal purchase of marijuana is allowed to users 21 and older. As of now, the only legal sellers of cannabis are medical marijuana dispensaries. In mid-2020 however, Illinois will allow additional licenses to other stores and cultivators. By 2022, there could be several hundred stores operating in the sale of marijuana.
Illinois is allowing for cities and counties to dictate whether or not they can sell marijuana. Given this information, users can smoke marijuana legally in their home. However, they are prohibited in any public place, a motorized vehicle, on school grounds, near any emergency personal, including police officers, firefighters and anyone younger than the age of 21.
Yes, there is a tax and a large one. The purchase of Flower with 35 percent of THC will have a 10 percent sales tax. That's considerably high, but not the highest amount. Edibles have a 20 percent sales tax and marijuana products like vapes, that have 35 percent or more THC within them, have a 25 percent sales tax. Yikes! Also, Illinois has stated that cities and counties are allowed to apply further local sales tax.
Nevertheless, Illinois is subject to change and grow with the sales of recreational marijuana. The sales tax, if put into the right hands, will benefit the state. Given the fact that Illinois has reached upwards of $20 million since January, 12, it is a sure sign of its positive growth.
Where did all the Marijuana Go?
Since the selling of marijuana in Illinois, stores are quickly out of the product. Well, where did it all go? It's not hard to believe, but the shortage is a mix of elements.
The important issue is that nearly $20 million have been sold already. Given the way the law is set up in the state, medical marijuana users are allowed first-come, first-serve. Marijuana must be sold to them and many dispensaries are only selling to them at the moment because they are low on stock. Understandable!
Other issues are that some stores might be violating state laws. This would include some stores that are sourcing more than 40 percent of their products by only one grower. That is illegal in Illinois and stands to make sure certain stores don't enter some sort of agreement with growers.
Overall, it was highly anticipated that this might happen. Chicago is a massive city with close to three million people. It might take some time for stores to become better at storage.