Pot Brownies Don’t Get Illinois’ Grocery Sales Tax Break

Pot brownies and cannabis-infused gummy bears can’t be considered food under Illinois’ sales and use tax code and don’t qualify for the 1% preferential rate on groceries.

The state Department of Revenue finalized a regulation June 26 clarifying that food items containing cannabis must be taxed at the 6.25% general merchandise rate, not the 1% rate that applies to most grocery items. Food items containing cannabis are also subject to Illinois’ Cannabis Cultivation Privilege Tax Law and the Cannabis Purchaser Excise Tax Law, the department said.

• In June 2019 Gov. J.B. Pritzker (D) signed legislation making Illinois ...