Illinois started things off right in 2020 with recreational cannabis sales…
“It is hopeless for the occasional visitor to try to keep up with Chicago-she outgrows his prophecies faster than he can make them. She is always a novelty; for she is never the Chicago you saw when you passed through the last time” Mark Twain
I love Chicago.
It reminds me of New York before that city got too expensive and exclusive.
It’s a great mix of the old and the new.
You can get a beer and a burger in a 120-year old former speakeasy and then walk to the fantastic new Riverwalk, which turned a formerly hard-scrabble industrial river site into a getaway for all Chicagoans.
The architectural boat tour there will give you an education on the past 150 years of skyscraper history in just a couple of hours.
I wasn’t an architecture buff before I took that tour, but I sure am now!
If I could stand the harsh winters, I’d probably move to Chicago.
But I may have to hop on a plane and brave the cold for a visit because of what happened on January 1.
That’s when Illinois legalized recreational cannabis sales.
Illinois Kicks Off Legalization Frenzy
In the first year, projections show Illinois could be a cannabis market worth $2 billion.
And from our report on December 11, 2019, you already know that one of the reasons Chicago is going to be the “Marijuana Mecca of the Midwest” is because of tourism.
When Rahm Emanuel became mayor in 2011, one of his focal points was to get more people to visit Chicago.
Chicago had 39 million visitors when he became mayor in 2011.
In 2017, the city set a record with 55.2 million visitors. It then upped that number to 57.6 million in 2018.
For the wave of tourists visiting in 2020, there will be some great dispensaries to check out.
In fact, for the first day of sales, Cresco sold more than 9,000 cannabis products at a ticket price of $135.
But outside of the tourism, there’s another reason I was so excited for Illinois to launch recreational sales.
Creating the Right Tax Structure
Illinois has the chance to set an example for how cannabis taxes should be regulated.
A successful tax structure in Illinois could establish a model framework throughout the United States.
Illinois has decided to tax cannabis with a THC level at or below 35% with a 10% excise tax.
Products above a 35% THC level will be charged 25%.
In Michigan, for example, that tax rate is 10% for all cannabis products, no matter the amount of THC.
Still, I believe many cannabis enthusiasts will adjust to the larger cost in exchange for being able to purchase a legal, tested product from a safe environment from knowledgeable salespeople who have an interest in their health.
All of the data that’s gained from Illinois selling cannabis is going to be a goldmine for regulators.
Remember that one of the hold ups for legalization in New York in 2019 was arguing over how much cannabis should be taxed.
If the system works in Illinois, New York regulators know it is one that could work for their state.
If it doesn’t, they know it’s one to avoid.
Either way, it gets the right system in place sooner rather than later.
And more cannabis stores up and running is what will lead to more sales, more profits, and higher stock prices.
Executive Director, National Institute for Cannabis Investors
P.S. Illinois isn’t the only state jumping on the legalization train. This trend is continuing to sweep across the country… which means more money is being poured into the industry every day. Learn how you could capitalize on this cannabis cash wave in your copy of the 2020 Pot Profits Roadmap.
9 responses to “My Newest Reason to Love Chicago”
January 02 2020