Amendment of Municipal Code Title 3 by adding new Chapter 3-57 establishing Hemp Beverage Tax on beverages sold at retail that contain up to 80mg of THC
The Chicago City Council passed the Chicago Hemp Beverage Tax Ordinance on February 19, 2025, imposing a tax on hemp beverages based on their THC content. The tax is collected by wholesalers or retailers and paid by the purchaser. Retailers are required to report and pay taxes on existing inventory and could face a penalty of $1,000 per business location for non-compliance. The ordinance also includes regulations on the sale, labeling, and testing of these products, with fines for non-compliance ranging from $200 to $10,000. The ordinance, effective from June 1, 2025, also restricts the sale of regulated products to those under 21 and limits the display of these products.