Marijuana Business Factbook 2019

Marijuana Business Factbook 2019 Chapter 2 | State-By-State: Legal Overview, Market Data and Outlook 72 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. ILLINOIS Medical continued Business regulations Very heavy. Illinois is a complex market for businesses to navigate. The state has implemented caps on the number of dispensaries and cultivation sites allowed to operate, and licensing fees are steep. Strict rules govern nearly all aspects of business operations, including location, security, inventory tracking and testing. BUSINESS TAXES & FEES Application Fees Dispensaries: $5,000 Cultivators: $25,000 License Fees Dispensaries: $30,000 (new), $25,000 (renewal) Cultivators: $200,000 (new), $100,000 (renewal) Working capital/escrow/bond requirements Dispensaries: $50,000 Cultivators: $2,000,000 (can be reduced to $500,000 upon achievement of certain milestones) State tax requirements 1% retailer’s occupation tax on dispensary sales; 7%medical cannabis privilege tax on cultivators State tax collections in 2018 $4,864,860 (privilege tax). Specific data on retailer’s occupation tax on dispensary sales not provided. SUPPLY CHAIN DYNAMICS Dispensary structure For-profit allowed Number of businesses allowed Dispensaries: 60 Cultivators: 22 Number of businesses operating in early 2020 Dispensaries: 55 Cultivators: 21 Testing Labs: 6 Weighted average price per pound of marijuana $3,164 MARKET OVERVIEW Number of registered patients 98,171 (up from 61,231 in early 2019); 1,799 additional patients in the Opioid Alternative Pilot Program Estimated 2019 MMJ sales via dispensaries $251 million (up from $133 million in 2018)