Real estate tax services
Real estate tax services investment trusts (REITs), private equity funds and other real estate owners and operators must competitively source and qualify investments, structure funds and effectively develop and operate their properties.From attracting initial capital to facilitating a successful exit, virtually every real estate-related decision and transaction has tax implications. To identify issues and deal breakers early on, real estate investors require in-depth due diligence from a tax perspective.
Retail Sales Tax Structure
Retail Sales Tax Structure – Sales to end users are subject to all state and local retailers’ occupation taxes
the state tax rate is 6.25% of the selling price,
local tax rates vary by location
The Cannabis Purchaser Excise Tax must be electronically reported to the IDOR under requirements that mirror those for cultivatorsPre-payments required 7th, 15th, 20th, last day of monthCannot be less that 22.5% of actual month sales or 26.25% of same month prior year?Bundling of cannabis sales with non-cannabis products is prohibited.
Country Cannabis Retailers’ Occupation Tax
Two new local retailers’ occupation taxes are imposed on sales to end usersCannabis County Retailers’ Occupation Tax collected and enforced by IDORThe tax can be imposed in .25 percent increments, and the maximum tax rate that may be imposed by a county depends on the seller’s location.Sales in an unincorporated area of a county may be taxed at a maximum rate of 3.75%Sales made in a municipality located in a home rule county, namely Cook County, may be taxed at a maximum rate of 3%Sales made in a municipality in a non-home rule county (every county other than Cook) may be taxed at a maximum rate of .75 percent
Municipal Cannabis Retailers’ Occupation Tax
The legislation also authorizes the imposition of the Municipal Cannabis Retailers’ Occupation TaxMunicipal taxes can be imposed in .25 percent increments up to 3 percent of gross receipts
Cannabis Purchases Excise Tax
This tax is imposed and collected by cannabis retailers on sales to end usersThe tax rate varies by the type of product, and in the amount of THCFlower below 35% THC — 10% Excise TaxEdibles — 20% Excise TaxConcentrates above 35% THC — 25% Excise TaxThe Cannabis Purchaser Excise Tax must be stated separately on customers’ bills
Financial Reporting
For Dispensing Organizations ONLY:(4) The dispensing organization shall file an annual compilation report with the Department, including a financial statement that shall include, but not be limited to, an income statement, balance sheet, profit and loss statement, statement of cash flow, wholesale cost and sales, and any other documentation requested by the Department in writing
Cannabis Cultivation Privilege Excise Tax
A tax of 7 percent is imposed on gross receipts of cannabis sales by cultivators and craft growers (Excise)Licensure by the state is required to be eligible to register with the IDORThe IDOR may set the selling price if it determines that a transaction is not an arm’s length sale
Cultivation Excise Tax
Cultivators may recover the tax by stating it as a separate charge on the bill to their customers.The right of reimbursement is a recognition that the tax is not is the responsibility of the purchaser it can’t be collected from a purchaser if not paid by the cultivatorThe tax is like locally-imposed retailers’ occupation taxes — the tax is on the seller with a right of reimbursement from the purchaserA purchaser with enough bargaining power could actually decline to reimburse cultivators for the tax
Other Licenses Tax
The next tier of the tax process applies to companies that infuse cannabis into other products, like edibles“Infusers” may be required by the IDOR to file information returnsInfusers are not subject to taxation — they are buying cannabis for processing and resaleThe requirement of information returns is a mechanism by which the IDOR can ensure that cannabis raised by cultivators and craft growers is not diverted to the black market
Retail Sales Tax Structure – Accounting Services in Chicago – Contact Us
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