Algonquin to vote Tuesday on 3% marijuana tax

 
 
Updated 10/11/2019 4:18 PM

The Algonquin village board is slated to vote Tuesday on whether to implement a tax on recreational marijuana sales, should the village eventually allow such retail operations in town.

The proposed 3% municipal cannabis retailers' occupation tax is the highest rate a town can impose under the Cannabis Regulation and Tax Act. Algonquin's home-rule sales taxes also would apply, and the village would collect a portion of the state's tax revenue from adult-use marijuana sales, Village Manager Tim Schloneger said in a memo to the board.

                                                                                                                                                                                                                       
 

Implementing the tax would not commit the village to allowing cannabis sales, he said, but having the measure in place would ensure Algonquin could collect the maximum revenue possible should a dispensary open in town.

Trustees acting as a committee of the whole this week agreed to push forward the proposed ordinance for village board consideration.

A new state law legalizing adult cannabis use takes effect Jan. 1, prompting debates in several communities over whether to permit or ban sales. Municipalities can't outlaw possession, but they can regulate the zoning of related retail operations.

During an early discussion on the topic, a majority of trustees indicated they would support allowing cannabis retailers in the village. A straw poll showed trustees Laura Brehmer and Debby Sosine opposing the concept, according to draft meeting minutes.

The law's potential financial impact on the village is largely unknown, though Police Chief John Bucci told trustees his officers would need additional training regardless of whether Algonquin allows sales. If a retail shop does move into town, Trustee Janis Jasper suggested putting the tax revenue toward the extra police training and resources.

Village staff members were directed to begin drafting regulations for recreational cannabis sales. The proposed ordinances will be discussed at an upcoming committee of the whole meeting.

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