By: Diane Benjamin
The Pekin City Council approved an ordinance imposing a 3% sales tax on cannabis sales during Monday’s meeting.
The tax will be in addition to other local sales taxes collected by the city.
“Collection of municipal sales taxes on the sale of cannabis would not start until September 2020,” said Pekin City Manager Mark Rothert. “However, it is anticipated that legislation will be brought forth in the upcoming veto session of the Illinois General Assembly to amend the act to allow for the collection of sales taxes starting Jan. 1 of 2020. In anticipation of this amendment, the Illinois Municipal League has advised cities to adopt any desired sales tax on cannabis prior to Oct. 1, so the Illinois Department of Revenue has time to process such changes.”
Bloomington and Normal both missed that deadline!
Rothert added that the ordinance will simply establish a tax rate on cannabis sales. It does not guarantee that recreational cannabis facilities will be allowed in Pekin.
The council amended the initial proposed ordinance to change the tax rate from 2% to 3%. Another amendment earmarked 60% of the revenue generated for the city’s firefighters pension fund and 40% for the police pension fund. The amended ordinance passed by a 4-2 margin, with City Council members Karen Hohimer and John Abel voting against the measure and Council member Michael Garrison abstaining.
In other action, the Council changed the Zoning Board of Appeal to an advisory body instead of the final word. What took them so long?