Illinois Lawmakers Propose Bill to Lower Medical Cannabis Taxes

Illinois Lawmakers Propose Bill to Lower Medical Cannabis Taxes

Illinois lawmakers have introduced a new bill aimed at reducing taxes on medical cannabis. This legislation seeks to alter the tax code so that cannabis is treated like other prescription medications. The proposed changes would apply to buyers who purchase cannabis from a dispensary and possess a medical cannabis card.

The bill intends to amend the Retailers’ Occupation Tax Act, recognizing both prescription and nonprescription cannabis products as medicine. Additionally, it aims to modify the Cannabis Regulation and Tax Act to prevent certain cannabis-infused products from being taxed twice when used for medicinal purposes.

Illinois State Representative Sonya Harper, a Democrat, proposed this bill on January 10th. Following its introduction, the bill was referred to the House Rules Committee on January 28th. If the legislation is signed into law, the new tax changes are expected to take effect at the beginning of 2027.

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