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Illinois cannabis business compliance guide

In this guide, we'll cover:
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Market Type
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BioTrack & Inventory 
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Purchase Limits
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Taxes
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Delivery
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Things to Note
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State Resources

Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.

Market Type

In Illinois, adult-use cannabis is regulated by the lllinois Cannabis Regulation Oversight Officer (CROO) and medical cannabis is regulated by the Department of Health. Illinois does not allow out-of-state medical patients to purchase from medical dispensaries.

BioTrack & Inventory 

Illinois currently uses BioTrack as their seed-to-sale state traceability system. In Illinois, all inventory actions must be reported to the state system in real time. Additionally, medical patient information and purchases are also tracked in the Illinois Cannabis Tracking System. 

Purchase Limits

Adult-use

Illinois Residents

  • 30 g Flower
  • 5 g Concentrate and
  • 500 mg of infused cannabis

Illinois Non-Residents

  • 15 g flower
  • 2.5 g Concentrate and
  • 250 mg of infused cannabis


Medical

  • 2.5 Oz per 14 Days
  • Minor Patients (under 18) are limited to only cannabis infused products (purchased by caregiver)

Taxes

Adult Use Sales Tax

Illinois imposes a Cannabis Purchaser Excise tax on infused cannabis products and for inhalable cannabis products, Illinois imposes a Cannabis Purchaser Excise tax that varies based on the product’s potency

  • Cannabis flower, inhalables including vapes and infused prerolls (Under 35% THC) - 10% Sales Tax
  • Cannabis flower, inhalables including vapes and infused prerolls (Over 35% THC) - 25% Sales Tax
  • Infused Cannabis Products (Edibles, tinctures, topicals, beverages) - 20% Sales Tax

Note: The infused Cannabis category does NOT include any inhalables or concentrates/extracts. Inhalables, including vapes and infused prerolls are taxed based on potency. 

  • Local county taxes may also apply (which vary)

Medical Sales Tax

1% State Sales Tax

Adult-Use and Medical Cultivation Taxes

The Cannabis Cultivation Privilege Tax is imposed at the rate of 7% of the gross receipts from the first sale of cannabis by a cultivator.

You may find information on cannabis taxation at the Illinois Department of Revenue page

Delivery

Delivery is not permitted

Things to Note

  • As of November 10, 2023, curbside pickup at medical dispensaries took effect permanently. Medical dispensaries may continue to offer pick-up locations as long as they conform with administrative rules. 

Privacy, HIPAA compliance:

  • Consent Required to collect customer information  - adult-use dispensaries are not permitted to retain customer information obtained from an customer’s identification without customer consent
  • Illinois requires HIPAA compliance for medical dispensaries

State Resources

CROO compiles their rules and regulations here.

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