URBANA, Ill. (WAND) – Urbana’s city council has approved a tax on recreational marijuana sales.

The measure went up for a vote Tuesday night and passed, allowing Urbana to both become one of the first cities in Illinois to create the tax and also meet an end-of-September deadline for reporting taxation plans to the Illinois Department of Revenue. Urbana staff believe the Municipal Cannabis Retailer’s Occupation Tax could be a boon for state cities, according to The News-Gazette

When recreational marijuana use becomes legal in Illinois on Jan. 1, 2020, Urbana will have a 3 percent tax on sales. City staff previously said they believe total revenue from the tax each year from one dispensary would fall in the range of $275,000 to $550,000.

Urbana currently has a NuMed facility that distributes medical marijuana and plans to sell recreational marijuana in 2020, the newspaper said.

Champaign leaders are also considering a cannabis tax. A planned meeting on the issue there has tentatively been moved to a study session on Sept. 17.

As WAND-TV previously reported earlier in August, Taylorville has also passed a 3 percent tax on recreational marijuana.

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