IL HB1228

Expands the definition of "prescription and nonprescription medicines and drugs" in the Retailers' Occupation Tax Act to include cannabis and cannabis-infused products purchased by medical cannabis cardholders from dispensing organizations under the Cannabis Regulation and Tax Act

Exempts medical cannabis cardholders from the Cannabis Purchaser Excise Tax (10-25% depending on THC level) when purchasing cannabis or cannabis-infused products from dispensaries

Reclassifies medical cannabis purchases by cardholders to be taxed at the lower 1% rate applicable to medicines and drugs, rather than the higher cannabis-specific tax rates

Clarifies that "adult use cannabis" subject to cultivation and purchaser excise taxes does not include cannabis sold to medical cannabis cardholders under the Compassionate Use of Medical Cannabis Act

Effective January 1, 2027