Illinois: Proposal would let library districts tax marijuana

Cannabis paying for books and information, seems like a good idea to us.


The Daily reports

A bill filed in Springfield could allow local libraries to get a cut of the taxes on recreational cannabis sales, but it would come at the potential expense of county-level taxes.

House Bill 4135 would allow the state’s more than 600 libraries to impose a 1 percent tax on recreational cannabis sales in their jurisdictions.

State Rep. Dan Didech, a Buffalo Grove Democrat, said the idea for his legislation came from a conversation with a local library official.

“With the new cannabis law going into effect and a significant amount of tax revenue being generated by legal adult-use cannabis, they were interested in getting a piece of that pie,” he said.

Illinois’ combined tax rate for recreational cannabis is one of the highest in the nation, climbing as steep as 41 percent in some areas, depending on the potency of the product and local taxes.

In exchange for the 1 percent tax, the county that the library is in would be limited to taxing cannabis sales in the library district at up to 2 percent. Under existing law, counties can tax local recreational cannabis sales up to 3 percent. Didech’s bill would essentially redirect 1 percent of that to libraries.

County officials have raised concerns about the bill.

“What’s disappointing is that (the law) only happened in August and here we are in January and there’s already a pending bill that’s going to take away that three percent that the legislature recently afforded and divert it to another taxing jurisdiction without a direct correlation to the burden and impact of cannabis,” said Scott Hartman, president of the Illinois Association of County Administrators. Hartman is the deputy county administrator in McHenry County.


More at


IL HB4135 | 2019-2020 | 101st General Assembly


Spectrum: Partisan Bill (Democrat 1-0)
Status: Introduced on January 17 2020 – 25% progression
Action: 2020-01-22 – Referred to Rules Committee
Pending: House Rules Committee
Text: Latest bill text (Introduced) [HTML]


Creates the Library District Cannabis Retailers’ Occupation Tax Law in the Public Library District Act of 1991. Provides that, on and after January 1, 2021, the corporate authorities of a library district may, by ordinance, impose a 1% tax upon all persons engaged in the business of selling cannabis, other than cannabis purchased under the Compassionate Use of Medical Cannabis Program Act, at retail in the library district on the gross receipts from these sales made in the course of that business. Amends the County Cannabis Retailers’ Occupation Tax Law of the Counties Code. Reduces the tax rate the corporate authorities of a county may impose by 1% within a library district if the library district imposes a Library District Cannabis Retailers’ Occupation Tax. Effective immediately.
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2020-01-22HouseReferred to Rules Committee
2020-01-22HouseFirst Reading
2020-01-17HouseFiled with the Clerk by Rep. Daniel Didech

Code Citations

ChapterArticleSectionCitation TypeStatute Text
5555-1006.8Amended CodeCitation Text
751635-45New CodeSee Bill Text

Illinois State Sources


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