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Chicago’s hemp sector braces for collapse as city ban looms

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Whitney Economics analyzed the potential state and national effects of bans on the sale and production of hemp-derived cannabinoid products. The company conducted a survey in Illinois in March 2025 of Illinois hemp sellers, manufacturers and distributors from the perspective of revenue, state and local taxes, as well as employment and profits.

“The hemp-derived cannabinoid market is a major contributor to the economy of Chicago and Illinois. It is a major source of employment, wages, and state and local tax revenue. Based on a March 2025 survey, respondents indicated that if bans were imposed on the sale and production of hemp-derived cannabinoid products, these companies would go out of business entirely, or otherwise lose state employment. revenue. and increased spending by state and local governments to support displaced workers,” says Beau Whitney.

Illinois hemp derived retail analysis
The state has approximately 1,014 businesses supporting hemp-based retailers. These merchants generate more than $870 million in revenue and have a statewide economic impact of $2.1 billion. Including wholesale and manufacturing, revenue increases by $2.7 billion, with an economic impact of $6.5 billion. These numbers are based on a March 2025 survey of Illinois businesses. These businesses generate about $169.1 million for the state.

© Whitney EconomicsSource: State of Illinois, Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

Income based on hemp-derived cannabinoids
Annual revenue from hemp cannabinoid products is $2.7 billion.

© Whitney EconomicsSource: Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

Employment and wages
Overall, Illinois’ hemp-derived cannabinoid industry, including cultivation, employs nearly 13,500 workers statewide and pays more than $545 million in wages annually.

There are approximately 4,750 retail jobs associated with hemp-derived businesses. Wholesalers add 6,300 jobs and manufacturers add 2,500 jobs. Wholesale jobs are important because Illinois serves as a regional hub for other states.

© Whitney EconomicsSource: Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

Distribution of sales of hemp-derived products in Illinois
The sector breakdown of sales percentages shows a fairly even split between THCA flowers, vaporizers, edibles, and beverages. Beverages were projected to grow in 2025 in terms of total market share, primarily at the expense of vapes and edibles, but also at the expense of THCA flower. High state and local marijuana taxes are driving consumers to the hemp-derived market at every level.© Whitney EconomicsSource: Whitney Economics Illinois Hemp Cannabinoid Survey (March 2025)

The effect of excessive taxes on marijuana on consumer purchasing behavior
A separate report examining the impact of cannabis taxes on consumer purchasing decisions shows that lowering state and local marijuana taxes will increase marijuana sales and tax revenue. However, a simple hemp ban will not have a similar effect, as consumers will buy marijuana and hemp products online or in other states, such as Michigan or Missouri, where prices and taxes are significantly lower. (Source: Cannabis Tax in Illinois – Whitney Economics – April 2025)

Chicago specific data
Chicago has identified approximately 220 retail businesses. (These are merchants with a Chicago address). Wholesaler, distributor and manufacturing data is more difficult to obtain. They generate about $475 million in sales from these retailers. CBD sales add roughly $30 million to that number, but this is a rough estimate because CBD is so common in cosmetics and other non-toxic products. Retail sales tax revenue is estimated at $31 million a year from sales tax alone. This does not include $5.0 million – $7.5 million in license fees.

© Whitney Economics

Retail employment is also significant with 1,030 – 1,250 workers, generating $37,214,900 in wages.

© Whitney Economics

The effect of bans on companies and employment
A majority of survey respondents indicated that if there were severe restrictions or legislation banning sales, they would move to another state or go out of business. “One by one, survey respondents told me they were moving away from retail operations in favor of a distribution model,” says Beau Whitney.

Effects of statewide cuts
Across the state, the impact of restrictions or bans is significant. Negative numbers represent losses in the chart below.

© Whitney Economics

For more information:
Whitney Economics
Beau Whitney
(503) 724-3084
www.whitneyeconomics.com

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Speakeasy Dispensary announces opening of newest Kentucky location

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Speakeasy Dispensary will officially open its newest medical cannabis location in Kentucky at 108 E. Main St., Princeton, KY 42445, further expanding access to patients in Caldwell County and surrounding communities.

The dispensary will open at 11:00 a.m. on Friday, April 10 for registered medical cannabis patients.

Located in the heart of downtown Princeton, the space reflects Speakeasy’s vision to blend local character and a comfortable, patient-first experience. The carefully designed environment provides a welcoming entrance before patients enter the main sales floor, where trained team members provide personalized guidance and education tailored to the individual’s needs.

“Each new location is an opportunity to meet patients where they are,” said Casey Flippo, CEO of Gold Leaf Management. “Communities like Princeton are an important part of Kentucky’s medical cannabis program, and expanding access here means more patients can explore safe and regulated options closer to home. As the program continues to take shape, our focus remains on building something reliable, accessible and rooted in long-term care.”

Opening weekend will feature a low-cost patient drive, offering new and existing patients an affordable and streamlined way to obtain or renew their Kentucky cannabis license.

© Speakeasy Dispensary

In partnership with the Kentucky Cannabis Industry Association and LexMed & Wellness, patient tours will be held Friday, April 10th from 11:00am to 7:00pm and Saturday, April 11th from 11:00am to 5:00pm. Appointments will be made with a licensed provider in a mobile unit on site, so patients can complete the entire process, including assessment, notary and state filing, in one visit.

Patients can register for an appointment by clicking here. The appointment fee is $25, and an additional $25 state fee must be paid when submitting documents to the state portal. The $25 state fee is waived for anyone who received a valid medical card in 2025.

As Kentucky’s medical cannabis market continues to develop, product availability and selection will continue to grow along with additional growers and processors entering the space. In addition to flowers and gummies, Speakeasy Princeton plans to have an extensive menu soon after opening, which will include vapes and concentrates, along with a new variety of gummies. Speakeasy continues to focus on providing a consistent education-first experience supported by strong statewide partnerships.

For more information:
Speakeasy Dispensary
speakeasydispensaries.com/

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West Virginia Treasurer Allocates Medical Marijuana Revenue Despite Governor’s Veto

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“The issue is not whether the funds should be used, but how they are used and how we are doing it in a responsible and sustainable way.”

By Henry Culvyhouse, Mountain State Spotlight

This story was originally published by Mountain State Spotlight. Get stories like this delivered to your email inbox once a week; sign up for the free newsletter at https://mountainstatespotlight.org/newsletter.

Even with the veto he could have delayed it further $38 million spent on medical marijuana raised over the past four years, state Treasurer Larry Pack (R) now says he will release the funds during his original term.

Last week, Gov. Patrick Morrisey (R) vetoed a bill that would have required the release of medical marijuana funds to help the homeless and expedite child abuse and neglect cases in the court system. He said the bill tied up money for future expenses.

In his veto letter, Morrisey wrote, “West Virginia needs to do a better job of planning for the future, and cannot fully pre-commit future revenue like this if it has reserves to invest more in roads, water, sewer, site selection, rail and future tax cuts.”

Morrisey said he was willing to negotiate with the Legislature on how to spend the money.

“The issue is not whether the funds should be used, but how they are used and whether we are doing so responsibly and sustainably,” Lars Dalseide, a spokesman for the governor’s office, wrote in an email.

But the money was pre-committed in state code.

Pack’s office said 100 percent of that money will go to various offices and programs mandated by the original law; more than half to the Office of Medical Cannabis, with the remaining funds split between the substance abuse treatment grant program and law enforcement grants. The move negates the governor’s desire to use future reserves to deal with infrastructure and tax cuts.

In October, a Mountain State Spotlight investigation revealed that $34 million was deposited into an account held by the Treasury Department from the state’s medical marijuana program..

Pack’s office said the money it was not spent due to legal concerns about the drug. Currently, marijuana is listed as a Schedule I narcotic under federal law, meaning it has no medical use and is illegal.

Pack is not the first state treasurer to express concern. State Treasurer John Perdue (D) said his office would not keep money in 2018 after the Medical Cannabis Act was passed. Riley Moore (R), who beat Perdue in the 2020 race, never released the money.

In the 2026 Legislative Session, Del. Rep. Evan Worrell, R-Cabell, said he read a report on the funds raised and wanted to change it. He successfully led a bill that would have forced the state to spend money on a commission to help thousands of children with abuse and neglect in court and homelessness services.

Had the governor not vetoed the bill, the money would have been earmarked for one year for those things. The commission on substance abuse research, treatment, and abuse and neglect would continue for years to come.

Treasurer’s Office spokeswoman Carrie Smith said that due to the complexity of state and federal laws, the office had been working for months to release the money. He said that the money has been sent to the Department of Security and the Department of Health.

This the article appeared for the first time The focus of the Mountain State and is republished here under a Creative Commons Attribution-NoDerivs 4.0 International License.

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Critical updates for cannabis taxpayers as the 2025 filing deadline approaches

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With the April 2025 tax return filing deadline fast approaching, cannabis companies must once again face the burden of Section 280E of the Internal Revenue Code (“Section 280E”). Despite significant developments over the past year — including a major executive order from President Trump and the IRS, for the first time, disclosing legal reasoning funds to keep state cannabis “within the meaning” of Section 280E — taxpayer scrutiny remains the same.

However, whether substantively or psychologically, these recent developments weigh on how taxpayers should deal with Section 280E. Below, we summarize the key developments that cannabis taxpayers should be aware of as they prepare their 2025 returns.

As discussed in previous publications, Section 280E provides: “(e) no deduction or credit shall be allowed for any amount paid or incurred in the course of any trade or business during the taxable year, if such trade or business (or the activities constituting such trade or business) is trafficking in controlled substances (controlled substance classes I and II prohibited by State or Federal law).

Because cannabis is now listed as a Schedule I controlled substance under the Controlled Substances Act (CSA), the IRS has consistently maintained that Section 280E applies to state-licensed cannabis businesses, significantly increasing their effective tax rates.

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