Over the last year, Naperville marijuana sales generated around $1.7 million in sales tax revenue for the city. That number reflects $700,000 more revenue than was previously anticipated, according to estimates from the mayor.
Mayor Steve Chirico said he’d also consider adding a fourth dispensary to the city because of the strong showing. From 2020 to 2021, the sale of adult use marijuana in Illinois more than doubled. Sales from 2020 amounted to $669 million, which skyrocketed to $1.38 billion this past year.
City officials have had a difficult time determining Naperville’s share of the heavily taxed good as the state does not give municipalities a detailed breakdown of sales tax revenue for marijuana sales. The reason, they say, is that it would breach confidentiality.
“It’d be nice if we were actually given a breakout, but that’s just not how it works,” said Chirico. Still, it is possible to extrapolate an estimate by using the data that is available, Chirico added.
Since Illinois’ 109 total dispensaries surpassed $1.3 billion in sales for adult use cannabis in 2021, Naperville’s three dispensaries likely contributed roughly 2.75 percent, which translates to $35.8 million. After applying the city’s marijuana tax rate of 4.75 percent to the $35.8 million, Chirico calculated the city should at least account for $1.7 million.
“It’s not exact science,” he said. “You have to make a couple of assumptions, one of them being that we’re average. But other than that, the numbers are pretty accurate.”
The city estimated they would receive around $1 million in sales tax revenue from cannabis sales in 2021 and 2022. Chirico added that once the state legalized marijuana, he saw a potential financial benefit for Naperville. “A lot of people questioned it, didn’t believe it was going to be as large as what we were predicting,” he said.
ARTICLE: ELIZABETH HERTZBERG
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: CHICAGO TRIBUNE