Collinsville cannabis dispensary on the verge of becoming city's biggest sales tax generator

"If the trend stays this way, [Illinois Supply and Provisions] will be our biggest sales tax generator -- for sure -- within the community," says Collinsville City Manager Mitch Bair.

Brian Kelly
February 05, 2020 - 10:02 pm

COLLINSVILLE (KMOX) -- The long lines outside the cannabis dispensary in Collinsville are bringing smiles to the faces of city officials -- just one month into selling recreational marijuana, the former HCI Alternatives is on the verge of becoming the city's biggest sales tax generator.

It's estimated that the dispensary now called Illinois Supply and Provisions will generate $120,000 in tax revenue from January sales alone. For the year, the city budget was expecting $1.5 million in revenue, but after that first month, they're now expected to hit $2 million. 

City Manager Mitch Bair tells KMOX the little shop along I-55/70 is already challenging the big boys when it comes to tax revenue generated.

"We have Laura Buick GMC which is the number one dealer in the country for Buick and GMC models, and Walmart, those are always our two big gorillas on the block," Bair says. "But if the trend stays this way, [Illinois Supply and Provisions] will be our biggest sales tax generator -- for sure -- within the community."

Bair says the city's take will increase in July when it will be able to add a 3.25 percent cannabis tax to the currently charged 2.25 percent in local taxes.

He says the revenue will be split between administration/operations and capital projects.

"Primarily streets, sidewalks, infrastructure, stormwater projects... we have a lot of needs here, especially stormwater wise as most communities do," Bair says. "Really that brings us the ability to increase services to residents, and have it be paid for by the majority of people who don't live in this community, many of them don't live in the state of Illinois."

Statewide, more than $39 million was collected in January -- how much tax revenue the state gets from that is still up in the air. Of that, roughly $8.6 million came from out of state customers. Nearly 1 million products were sold.

Additional editing by Alex Degman

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