URBANA — Ahead of tonight’s final vote on whether to impose a 3 percent tax on recreational cannabis sales in Urbana, there remain unanswered questions.
Among them: Whether to allow bars and other locales to permit cannabis consumption on site and whether to eventually allow more than one dispensary to sell recreational marijuana.
At the same time that Urbana is winding down its discussion on a cannabis tax, the city of Champaign is gearing up for one of its own.
City spokesman Jeff Hamilton said a planned meeting on the issue slated for the middle of October has been tentatively moved up to a Sept. 17 study session.
Like municipalities statewide, Champaign must let the state Department of Revenue know whether it intends to impose a tax on cannabis by the end of September.
The Municipal Cannabis Retailer’s Occupation Tax could be a boon for cities, Urbana staff noted in a memo to council.
It predicts that sales at the current NuMed facility — which is licensed to distribute medical marijuana and plans to add recreational sales — will be between $5 mill-ion and $10 million annually.
“Based on this revenue estimate, a 3 percent tax would produce $150,000 to $300,000 in revenue,” Urbana staff noted. “In addition, the City would expect to receive $125,000 to $250,000 in State and Home Rule sales tax revenue. The total revenue impact would be between $275,000 and $550,000 annually for one dispensary.”