November 21, 2024
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McHenry County saw jump from 1 to 6 marijuana dispensaries in 2023, nearly $900K in tax revenue

Lake in the Hills generates $500,000 in cannabis taxes in 2023

By Michelle Meyer
Dakota Tonnberg, left, a patient care specialist at RISE, helps Dylan Scott, of Crystal Lake, shop for marijuana products Thursday, July 14, 2022, at RISE, 270 North Randall Road in Lake in the Hills. Marijuana is set to grow both across the state and in McHenry County. Currently, RISE in Lake in the Hills is the lone dispensary open in the county.

Dakota Tonnberg, left, a patient care specialist at RISE, helps Dylan Scott, of Crystal Lake, shop for marijuana products Thursday, July 14, 2022, at RISE, 270 North Randall Road in Lake in the Hills. Marijuana is set to grow both across the state and in McHenry County. Currently, RISE in Lake in the Hills is the lone dispensary open in the county. (Gregory Shaver - gshaver@shawmedia.com/Gregory Shaver Shaw Media )

With six marijuana dispensaries now operating in McHenry County – five opening in 2023 alone – the county and host communities have started to reap the rewards of extra tax dollars.

McHenry County received $868,190 in cannabis tax revenue during the fiscal year that ended Nov. 30, 2023, according to McHenry County communications and project manager Alicia Schueller.

Over 30% of the total tax revenue was generated between the months of June through August, collecting $273,180, Schueller said, adding the money is “placed into the general fund to reduce the need for property tax revenues.”

The expansion in McHenry County’s marijuana footprint has came with some pushback from State’s Attorney Patrick Kenneally, who threatened to sue dispensaries that wouldn’t comply with posting warnings about the mental health risks of using marijuana. All the dispensaries have agreed to post the warnings, Kenneally told the Northwest Herald last week.

People look at available products during an open house Thursday, Feb. 2, 2023, at the Ivy Hall Crystal Lake, a social equity-licensed cannabis dispensary that recently opened at 501 Pingree Road in Crystal Lake.

People look at available products during an open house Thursday, Feb. 2, 2023, at the Ivy Hall Crystal Lake, a social equity-licensed cannabis dispensary that recently opened at 501 Pingree Road in Crystal Lake. (Gregory Shaver — gshaver@shawmedia.com/Gregory Shaver - gshaver@shawmed)

The signs say: “WARNING: Cannabis use may contribute to mental health problems, including psychotic disorders such as schizophrenia, increased thoughts of suicide and suicide attempts, anxiety, and depression. Risk is greatest for frequent users.”

Five dispensaries opened in the county this year: Spark’d in Richmond and Crystal Lake, Vertical in Cary, Ivy Hall in Crystal Lake and EarthMed in McHenry.

Spark’d in Richmond opened late August, and also has a consumption lounge where people can stay and use marijuana for up to 90 minutes. It is the first lounge in the county.

Spark’d opened its second location in Crystal Lake this month and EarthMed in McHenry opened the same week.

Vertical Dispensary in Cary made a big splash into the industry with a grand opening on Sept. 30 that hosted former Chicago Bears quarterback Jim McMahon.

Former Bears quarterback Jim McMahon poses for a photograph during the grand opening of the Vertical Dispensary on Saturday, Sept. 30, 2023, in Cary. The dispensary has been open for about a month.

Former Bears quarterback Jim McMahon poses for a photograph during the grand opening of the Vertical Dispensary on Saturday, Sept. 30, 2023, in Cary. (Gregory Shaver/Gregory Shaver )

RISE in Lake in the Hills is the longest standing dispensary in the county, having been open since 2021. With a couple of years under the belt, the extra tax revenue has helped offset inflation costs, Village President Ray Bogdanowski said.

Lake in the Hills collected about $500,000 this year from cannabis tax revenue, Bogdanowski said. The extra tax revenue goes to the village’s general fund and helped keep tax levies flat this year, he said.

“Basically, it’s half a million in revenue that the village didn’t have before,” he said.

The most the village received was last year with $600,000. Now that multiple dispensaries have opened in neighboring towns, Lake in the Hills expects to see about 17% less tax revenue from this year, Bogdanowski said.

Richmond has already received their first cannabis tax revenue Richmond President Toni Wardanian said. For one week of August, the village made about $3,400.

The village plans to use the extra tax revenue for its parks and recreation department, but further details will come when budget plans come together in February, Wardanian said.

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