Algonquin’s Committee of the Whole moved an ordinance placing a municipal tax on marijuana businesses to the Village Board for consideration at its meeting Wednesday.
The committee did not make a decision on whether to allow marijuana businesses in the village. The implementation of the tax is a “standalone consideration,” according to village documents, and does not commit the board to letting cannabis retailers in Algonquin.
Village Attorney Kelly Cahill said the purpose of this ordinance is to make sure that if the villages does decide to allow dispensaries, they can get tax money from them.
“If [the board] decides to allow a dispensary, at least it’s already on the books [so] they can collect the tax as soon as possible,” Cahill said. “If they decide not to allow the dispensaries, then it’s a nonissue.”
The village would be able to impose a sales tax of 3% if it chooses to allow a cannabis business within village limits.
The tax would be collected by the Illinois Department of Revenue, which would in turn withhold 1.5 % of the total collected.
During the meeting, Village President John Schmitt suggested discussing how the village could use the tax money.
Village Manager Tim Schloneger recommended not putting the money in the village’s general revenue fund. Instead, he said the village should restrict the sales tax money received to a specific fund.
Trustees discussed putting the sales tax money toward marijuana-related training for the police department and the village’s parks and recreation programs.
There was no recommendation made on where to funnel revenue received from the marijuana sales tax, but it will be up for future discussion and be put into another ordinance, Schmitt said.