Submitted By
Cara Pavlicek, Village Manager
Reviewed By
CLP
Agenda Item Title
Title
First Reading of an Ordinance Amending Chapter 23A ("Taxes") of the Oak Park Village Code by adding a New Article 10 ("Cannabis Privilege Tax").
End
Overview
Overview
An Ordinance has been prepared to impose and levy a tax upon a cultivation center engaged in the privilege of the sale of cannabis as permitted by the State of Illinois, including medical infused product to a dispensing organization located within the Village of Oak Park at the rate of six percent (6%) of the sales price per ounce. This tax shall be in addition to any and all other taxes imposed upon such sales and distribution.
Body
Staff Recommendation
Conduct first reading and subject to the Village Board consensus waive second reading and adopt the ordinance for an effective date of January 1, 2019.
Fiscal Impact
The adopted FY19 General Fund budget does not include revenues from the recommended privilege tax. Staff projects that a 6% privilege tax could conservatively generate new revenue of $40,000 in FY19 due to the fact that the Village of Oak Park current has a licensed dispensing facility. This assumes gross sales or annual revenues of more than $600,000 and is supported by models from other states. In the event, additional sales of cannabis are legalized by the State of Illinois; the fiscal impact would be recalculated and reported to the Village Board.
Background
In August 2013, Illinois Governor Pat Quinn signed Public Act 098-0122, "The Compassionate Use of Medical Cannabis Pilot Program Act," into law with an effective date of January 1, 2014. The Act allows for the establishment of medical cannabis dispensaries and cultivation centers for the prescribing of medical cannabis to qualifying patients throughout Illinois. The Act permits 2.5 ounces of marijuana to be prescribed every two weeks to patients suffering from a list of identified illnesses and ailments. The doctor that pres...
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