The sale of cannabis isn’t expected to happen in Libertyville any time soon, but village officials are taking steps in case it does at some point.
At its Aug. 10 meeting, the Village Board approved establishing a 3% sales tax on recreational marijuana. Officials said they think it’s possible that non-home rule towns, like Libertyville, will be required in the future to allow the sale of cannabis, be it recreational or medical.
Financial Director Nicholas Mostardo said the Illinois General Assembly has a history of preempting non-home rule towns on some issues. And while there isn’t much to suggest cannabis dispensaries may be coming to the village in the near future, sale of the drug has proved to be a lucrative business, Mostardo said.
In July, the state pulled in $128 million in cannabis revenue.
The village has no dispensaries in town and has no plans for one, officials said. But since it takes up to six months for a tax to go into effect when submitted to the Illinois Department of Revenue, a dispensary opening because of state policy could cost the village tax revenue in the beginning if the tax isn’t in place.
The 3% rate trustees approved is the highest the village can enact, according state law.
In 2019, following Gov. J.B. Pritzker’s signing of the Cannabis Regulation and Tax Act, the Libertyville Village Board voted to prohibit the sale of recreational cannabis.
Officials said that any application for a dispensary in Libertyville would still have to have Village Board approval. Mostardo also clarified that adopting the tax does not change the village’s ban on the sale of recreational cannabis in town. Instead, it allows the village to be prepared, he said.
“We’re trying to be good financial stewards,” he said. “Nothing has changed on the policy end of things.”
Village Trustee Scott Adams, who also heads the Green Oaks, Libertyville, Mundelein, Vernon Hills Chamber of Commerce, said during the Aug. 10 meeting that Mundelein’s largest source of sales tax revenue has been cannabis dispensary Thrive Mundelein. Mundelein officials have said in the past cannabis sales tax helped the village’s finances during the coronavirus pandemic.
Trustee James Connell called enacting the tax was a “prudent” action, which was something Mayor Donna Johnson agreed with.
Trustee Daniel Love noted the medical benefits of cannabis, adding that he thinks the village has to be practical.
“I think it’s the right thing to do,” Love said. “I just think we gotta be practical because I think it’s gonna come.”
