Illinois Enacts Hemp Act, Revises Sales Tax Treatment of Hemp Cannabinoid Products

The Illinois Governor signed the Hemp Act. The law includes measures: 1) excluding final consumer hemp cannabinoid products from certain food-related sales and use tax provisions; 2) excluding final consumer hemp cannabinoid products from medicine-related sales and use tax provisions; and 3) revising the medical cannabis cultivation privilege tax to impose a 7 percent tax on medical cannabis sales. The law generally took effect June 12, while certain hemp-related provisions take effect Nov. 12, 2026. [S.B. 3222, enacted 06/12/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.