Illinois Medical Cannabis Sales

Medical Cannabis Sales
MC-2 Instructions
Schedule MC-2 General Information
Who must file Schedule MC-2?

If you are a medical cannabis cultivation center and you sell
medical cannabis, you must report your sales from each
cultivation center separately. You must complete and attach
Schedule MC‑2, Medical Cannabis Sales, to your Form MC‑1,
Medical Cannabis Cultivation Privilege Tax Return, to show the
breakdown of sales from each cultivation center.

How do I report my sales?

Follow the specific instructions on the following page to report
your sales. You must identify and report sales from each
cultivation center separately.

What sales are subject to the medical
cannabis cultivation privilege tax?

Tax is due on medical cannabis sold by a cultivation center.
Medical cannabis includes both bulk medical cannabis and
medical cannabis infused products.
Bulk medical cannabis is dried cannabis
•	 in its physical form to smoke;
•	 in its physical form to vaporize; and
•	 not infused or combined with another product for​
medicinal use.
Medical cannabis infused product is a product containing
cannabis or a cannabis concentrate, including
•	 capsules;
•	 food and beverage products prepared for consumption;
•	 cooking oils;
•	 tinctures or tonics, such as sprays or drops;
•	 topicals, such as ointments, balms, oils, lotions, gels, or
patches;
•	 bath salts or oils;
•	 aromatherapy sprays or essences;
•	 concentrates, extractions, oils, or wax for use with a
vaporizer; and
•	 hash and concentrates, including ice wax, bubble hash, oil,
wax, budder, pie crust, taffy, shatter, nectar, caviar, and kief.
See 86 Illinois Administrative Code Part 429 for more
information about medical cannabis products.

Printed by authority of the state of Illinois Web only - One copy MC-2-Instructions (R-12/19)

How do I calculate the medical cannabis
cultivation privilege tax?

Tax is calculated at a rate of 7 percent (.07) of the sales price
per ounce of medical cannabis.
Tax on a package of medical cannabis is based on the total
weight in ounces of medical cannabis as shown on the label
required by 8 Illinois Administrative Code Section 1000.420.
The sales price is determined without any deduction on account
of the cost of property sold, the cost of materials used, labor or
service cost, or any other expense whatsoever. See 86 Illinois
Administrative Code Section 429.110 for rules regarding the
treatment of transportation and delivery charges.
The tax is computed on the sales price of the medical cannabis
sold after the application of any applicable discounts.
There is no cultivation privilege tax on free samples of medical
cannabis given to a dispensing organization by a cultivation
center. However, a cultivation center will incur Use Tax liability
on the cost price of any free samples of medical cannabis given
to dispensing organizations. See 86 Illinois Administrative Code
Section 150.305(c).

What if I need help?

Visit our website at tax.illinois.gov, or call us weekdays
between 8:00 a.m. and 4:00 p.m. at 217 782-6045 or email us
at: [email protected].

Specific Instructions
When completing this form, please round to the nearest dollar
by dropping amounts of less than 50 cents and i­ncreasing
amounts of 50 cents or more to the next dollar.
Note: You must report your sales from each cultivation center
separately.
Enter your business’ Account ID and License number issued
by the Illinois Department of Revenue at the top of each page.
Also provide the reporting period.

Cultivation center’s information
Location code - Enter the location code of the cultivation
center, found on the certificate of registration, from which you
made sales of medical cannabis.
Business name and address - Enter the name and physical
address of the cultivation center from which you made your
sales.

Printed by authority of the state of Illinois Web only - One copy MC-2-Instructions (R-12/19)

Figure your privilege tax base
Line 1 - Enter the number of bulk ounces sold. (Enter ounces to
three decimal places.)
Line 2 - Enter the number of ounces infused into products sold.
(Enter ounces to three decimal places.)
Line 4 - Enter the consideration received for bulk ounces.
Line 5 - Enter the consideration received for ounces infused
into products.

Page totals
Complete the page totals for each page. The sum of all
combined Schedule MC-2 page totals must equal the
corresponding lines on Form MC-1.