Marijuana and money are becoming synonymous in many circles, and certainly in Illinois. After posting an article about Illinois closing its application process for interested marijuana cultivators and dispensaries, the financial windfall of Illinois' regulations began to sink in–and it's a behemoth one.
The $25,000 application fee that wannabe cultivators had to include in their applications is non-refundable–so the state pulled in more than $3.9 million on cultivation applications alone (from the 158 applications noted). Add in: "If accepted, they must pay a $200,000 licensing fee." With plans to award licenses to 22 cultivation centers statewide by the end of the year, that's another $4.4 million from initial cultivator's licensing fees alone.
And that doesn't include the windfall from dispensary applicants (211), which had to pay a $5,000 application fee, kicking in another $1 million-plus. (It's interesting to note that the application fee for a State of Illinois Retailer's Liquor License is $500.) If selected for a license, the dispensaries must pay an additional $30,000 licensing fee. With plans to award up to 60 licenses to dispensaries, that'll generate another $1.8 million.
Then there's renewal fees. The state has set the annual renewal fee at $25,000 for each operating dispensary–that will generate another $1.5 million each year. For cultivators, the annual renewal fee is $100,000–so that'll bring in roughly another $2.2 million annually.
So, to sum up:
- Cultivator applications: $3.9 million
- Cultivator initial licensing fees: $4.4 million
- Dispensary applications: $1 million
- Dispensary licensing fees: $1.8 million
For a whopping $11.1 million from applications and initial license fees alone.
For renewals:
- Cultivator license renewals: $2.2 million annually
- Dispensary license renewals: $1.5 million annually
For a total of $3.7 million annually from renewals.
With application and licensing fees this high, Illinois establishes its legalized marijuana industry as a playground for only those with substantial startup capital.
