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.
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.”