A study released on March 1 shows data regarding the potential of a recreational marijuana market in Illinois. It’s projected that the state could generate between $443 – $676 million in revenue annually. If this occurred, the current supply would be exceeded by demand.
Freedman and Koski conducted the study, Effingham Daily News reports. The study estimates that the state would need to produce anywhere between 350,000 and 550,000 pounds of marijuana plants to meet the anticipated demand. The current production in the state would only meet between 35% and 54% of that expected demand.
Expansion legislation is pending and has Democratic sponsorship. If expansion does take place now, it puts the state in a better position if recreational legalization occurs.
Senator Cassidy said, “We’re contemplating additional license categories such as craft cultivation, transportation and processing to ensure that everyone is at the table. These will create space for more innovation and entrepreneurship in the industry, but more importantly, provide opportunity for more diversity in an industry with a pressing need for it.”
It’s estimated that a recreational marijuana market in Illinois could generate between $1.69 and $2.58 billion in revenue. Those projections indicate that the state could generate between $443,690,100 and $676,481,400 in tax revenue providing that the presumed tax rate of 26.5% is applied.