HB5827 98TH GENERAL ASSEMBLY

LRB098 18971 RPM 54119 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5827

Introduced , by Rep. John D. Cavaletto

SYNOPSIS AS INTRODUCED:

410 ILCS 130/200

Amends the Compassionate Use of Medical Cannabis Pilot Program Act. Imposes (1) an additional tax upon the privilege of cultivating medical cannabis at the rate of 50% of the sales price per ounce, (2) a tax upon the privilege of dispensing medical cannabis at a rate of 25% of the sales price per ounce, and (3) a tax upon the privilege of using medical cannabis at a rate of 15% of the sales price per ounce. Provides that proceeds from the taxes shall be deposited into the General Revenue Fund and specifies the manner in which the proceeds shall be used.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public health.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Compassionate Use of Medical Cannabis Pilot Program Act is amended by changing Section 200 as follows:

(410 ILCS 130/200)

(Section scheduled to be repealed on January 1, 2018)

Sec. 200. Tax imposed.

(a) Beginning on the effective date of this Act, a tax is imposed upon the privilege of cultivating medical cannabis at a rate of 7% of the sales price per ounce. The proceeds from this tax shall be deposited into the Compassionate Use of Medical Cannabis Fund created under the Compassionate Use of Medical Cannabis Pilot Program Act. This tax shall be paid by a cultivation center and is not the responsibility of a dispensing organization or a qualifying patient.

(a-5) Beginning on the effective date of this amendatory Act of the 98th General Assembly, an additional tax is imposed upon the privilege of cultivating medical cannabis at the rate of 50% of the sales price per ounce. The proceeds from this 50% tax shall be deposited into the General Revenue Fund, and shall be used in the manner set forth in subsection (a-10) of this Section.

A tax is imposed upon the privilege of dispensing medical cannabis at a rate of 25% of the sales price per ounce. The proceeds from this tax shall be deposited into the General Revenue Fund, and shall be used in the manner set forth in subsection (a-10) of this Section.

A tax is imposed upon the privilege of using medical cannabis at a rate of 15% of the sales price per ounce. The proceeds from this tax shall be deposited into the General Revenue Fund, and shall be used in the manner set forth in subsection (a-10) of this Section.

(a-10) Proceeds from the taxes generated under subsection (a-5) of this Section shall be deposited into the General Revenue Fund. The proceeds shall be designated as follows:

(1) Thirty-five percent to pay outstanding pension obligations.

(2) Thirty-five percent to pay outstanding debt obligations of the State. Once outstanding debt obligations are eliminated, the remaining proceeds from the 35% shall remain in the General Revenue Fund.

(3) Thirty percent to be transferred into the Grandparents Custody Assistance Fund.

(b) The tax imposed under this Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.

(Source: P.A. 98-122, eff. 1-1-14.)