Illinois DOR Announces Municipal Cannabis Retailers’ Occupation Tax Rate Change Effective July 1

The Illinois Department of Revenue (DOR) has issued an informational bulletin announcing that Mount Zion will begin imposing a Municipal Cannabis Retailers’ Occupation Tax on adult-use cannabis sales effective July 1, 2026. Currently, no counties are implementing a new County Cannabis Retailers’ Occupation Tax. Municipalities may impose up to 3 percent, and counties up to 3.75 percent in unincorporated areas. Dispensaries must update cash registers and systems to collect the correct combined state and local tax rates beginning July 1. [Ill. Dep’t of Revenue, Informational Bulletin FY 2026-21, 04/20/26]

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