Illinois: Bourbonnais sets a 3% local cannabis tax from 1 January 2027

From 1 January 2027, adult-use dispensaries in Bourbonnais pay a 3% municipal cannabis tax. That’s the highest rate a village can set. It comes on top of the existing state taxes.

In short

• Bourbonnais (Kankakee County) will charge a Municipal Cannabis Retailers’ Occupation Tax of 3% of gross receipts on adult-use sales made on or after 1 January 2027.
• Medical cannabis sales are excluded.
• Dispensaries pay the tax to the Illinois Department of Revenue (IDOR), not to the village.
• No county starts a new county cannabis tax on that date.

What changed

IDOR’s Informational Bulletin FY 2027-06 lists Bourbonnais among the local governments with tax changes from 1 January 2027, but it doesn’t give the rate. The rate is in the village’s own Ordinance No. 26-2559, adopted on 8 September 2026. It adds Sec. 32-70(a) to the village code and sets the tax “at the rate of 3% of the gross receipts” from adult-use sales. Under state law (65 ILCS 5/8-11-23), a municipality can charge up to 3%, in 0.25% steps, so Bourbonnais has gone to the maximum.

What this means

A Bourbonnais dispensary’s adult-use sales will carry:

• the 6.25% state retailers’ occupation tax;
• the new 3% Bourbonnais cannabis tax;
• any local general sales taxes that apply at the store’s address;
• the cannabis purchaser excise tax (410 ILCS 705/65-10), which customers pay at 10%, 20% or 25% depending on the product and its THC level.

Cultivators also pay a 7% cultivation privilege tax further up the supply chain.

Take the lowest excise tier and leave out local general sales taxes, and cannabis taxes alone add up to 19.25% of the price (6.25% + 3% + 10%). The real total at a given store will be higher once its local sales taxes are added. Get the exact combined rate from the Tax Rate Finder (see below).

What you need to do

• Who is affected: adult-use dispensaries in the Village of Bourbonnais. Medical sales under the Compassionate Use of Medical Cannabis Program Act are excluded.
• What changes and from when: a new 3% municipal cannabis tax, for sales on or after 1 January 2027.
• The numbers: 3% municipal cannabis tax (Ordinance No. 26-2559, Sec. 32-70(a)), on top of the 6.25% state tax and any local sales taxes. Look up the combined rate for the store’s address in the MyTax Illinois Tax Rate Finder and select January 2027 rates.
• Filing: report and pay the tax to IDOR on Form CD-1. Businesses with more than one site also file Schedules CD-2 and CD-3. Returns are due by the 20th of the month after the reporting period.
• Medical opt-in licences: dispensaries that sell both medical and adult-use cannabis must report the two separately on Form CD-1. Only adult-use receipts carry the new tax.
• Systems: IDOR says dispensaries must update their registers and point-of-sale software for 1 January 2027. The ordinance lets retailers show the tax as a separate line on receipts.

Where to check

• MyTax Illinois Tax Rate Finder: the rate lookup tool. Enter the dispensary’s address and select January 2027 rates. The Tax Rate Finder link inside IDOR’s bulletin points to a mistyped address and doesn’t work, so use this one.
• Village of Bourbonnais Ordinance No. 26-2559: on Municode (PDF). It sets the 3% rate and the 1 January 2027 start date.
• IDOR Informational Bulletin FY 2027-06: the bulletin listing the January 2027 local changes.
• IDOR cannabis taxes: state and local cannabis taxes, returns and forms.

Sources: Village of Bourbonnais Ordinance No. 26-2559; IDOR Informational Bulletin FY 2027-06; 65 ILCS 5/8-11-23; 55 ILCS 5/5-1006.8; 410 ILCS 705/65-10; IDOR cannabis taxes page.

This is general information, not legal, tax or financial advice. Check the ordinance and the Tax Rate Finder before changing registers or software.