McHenry County saw jump from 1 to 6 marijuana dispensaries in 2023, nearly $900K in tax revenue
With six marijuana dispensaries now operating in McHenry County – five opening in 2023 alone – the county and host communities have started to reap the rewards of extra tax dollars.
McHenry County received $868,190 in cannabis tax revenue during the fiscal year that ended Nov. 30, 2023, according to McHenry County communications and project manager Alicia Schueller.
Over 30% of the total tax revenue was generated between the months of June and August, collecting $273,180, Schueller said, adding the money is “placed into the general fund to reduce the need for property tax revenues.”
The expansion in McHenry County’s marijuana footprint has come with some pushback from State’s Attorney Patrick Kenneally, who threatened to sue dispensaries that wouldn’t comply with posting warnings about the mental health risks of using marijuana. All the dispensaries have agreed to post the warnings, Kenneally told the Northwest Herald last week.
The signs say: “WARNING: Cannabis use may contribute to mental health problems, including psychotic disorders such as schizophrenia, increased thoughts of suicide and suicide attempts, anxiety, and depression. Risk is greatest for frequent users.”
Five dispensaries opened in the county in 2023: Spark’d in Richmond and Crystal Lake, Vertical in Cary, Ivy Hall in Crystal Lake and EarthMed in McHenry.
Spark’d in Richmond opened in late August and also has a consumption lounge where people can stay and use marijuana for up to 90 minutes. It is the first lounge in the county.
Vertical Dispensary in Cary made a big splash into the industry with a grand opening on Sept. 30 that hosted former Chicago Bears quarterback Jim McMahon.
RISE in Lake in the Hills is the longest-standing dispensary in the county, having been open since 2021. With a couple of years under the belt, the extra tax revenue has helped offset inflation costs, Village President Ray Bogdanowski said.
Lake in the Hills collected about $500,000 this year from cannabis tax revenue, Bogdanowski said. The extra tax revenue goes to the village’s general fund and helped keep tax levies flat this year, he said.
“Basically, it’s half a million in revenue that the village didn’t have before,” he said.
The most the village received was last year with $600,000. Now that multiple dispensaries have opened in neighboring towns, Lake in the Hills expects to see about 17% less tax revenue from this year, Bogdanowski said.
Richmond has already received their first cannabis tax revenue Richmond President Toni Wardanian said. For one week in August, the village made about $3,400.
The village plans to use the extra tax revenue for its parks and recreation department, but further details will come when budget plans come together in February, Wardanian said.