FULTON, Ill. — The sale of cannabis could lead to $150,000 to $200,000 in cannabis tax revenue from The Dispensary, Fulton officials said Monday.
Operators of The Dispensary, which distributes medicinal marijuana, project that the 3% cannabis tax would bring in $150,000 to $200,000 for the city each year, starting in the first year, if officials legalize the sale of cannabis within the city limits, Fulton City Administrator Randy Boonstra said.
The Dispensary’s estimate was based on projections and information from consultants, said Boonstra. He thinks the first year would be light, toward the $150,000 range, due to a lack of product to sell.
“There’s just only so many cultivation centers in Illinois,” Boonstra said. “So that may be a little low. On the other hand, they believe that once the cultivation centers have a sufficient product that the money will be more than that in the following years.”
The $150,000 to $200,000 projection does not include the 1% sales tax the city would also receive.
The Dispensary General Manager Jeff Soenksen said cultivation centers can start selling Jan. 1. The product is in short supply, he said, but he believes it will ramp up slowly.
“Current cultivation centers that are authorized to sell to adult-use dispensaries are currently expanding their facilities,” Soenksen said. “So we can probably expect three to six months after start of adult use we’ll see more of a sufficient supply of product, which is why that estimate varies so much in the first year.”
Lucien Debatty told the Fulton City Council that product will be available starting Jan. 1. Cultivation centers are allowed to sell to adult-use cannabis dispensaries starting in December, allowing the dispensaries to build up their stock to have purchase ready Jan. 1, he said.