CC-1 Adult Use Cannabis Cultivation Privilege Tax Return

What is the Cannabis Cultivation Privilege

Tax?

The Cannabis Cultivation Privilege Tax is tax imposed on gross

receipts of the ﬁrst sale of adult use cannabis by a cultivator or

craft grower for the privilege of cultivating cannabis.

The Cannabis Cultivation Privilege Tax is authorized by the

Cannabis Cultivation Privilege Tax Law (see 410 ILCS 705/60-1

et seq.).

Who must ﬁle Form CC-1?

You must ﬁle Form CC-1, Adult Use Cannabis Cultivation

Privilege Tax Return, if you are licensed as a cannabis

cultivation center or craft grower making sales of adult use

cannabis. Cannabis cultivation centers selling medical cannabis

must ﬁle Form MC-1, Medical Cannabis Cultivation Privilege

Tax Return, to report sales of medical cannabis.

Who must ﬁle Schedule CC-2?

If you have one business but sell adult use cannabis at

more than one cultivation site, you must report adult use

cannabis sales subject to the Cannabis Cultivation Privilege

Tax from each cultivation site. You must complete and ﬁle

Schedule CC-2, Multiple Site Form for Adult Use Cannabis

Cultivators, when you ﬁle your Form CC-1 to report the taxable

receipts from each cultivation site.

If I only sell medical cannabis, can I use

Form CC-1?

No, Form CC-1 is only used to report sales of adult use

cannabis. Sales of medical cannabis must be reported on Form

MC-1, Medical Cannabis Cultivation Privilege Tax Return.

When must I ﬁle Form CC-1?

You must ﬁle this return, along with any payment you owe, on

or before the 20th day of the month following the end of the

reporting period.

Note: If the due date falls on a weekend or holiday, your return

and payment are due the next business day.

Can I ﬁle Form CC-1 and pay the tax due

electronically?

Illinois law requires Form CC-1 to be ﬁled electronically and

the tax to be paid electronically. You must use MyTax Illinois

at mytax.illinois.gov to ﬁle your Form CC-1 and pay any tax

due. To request a waiver of the electronic payment mandate,

complete Form IL-900-EW, Electronic Waiver Request, which

is available from the Illinois Department of Revenue by request

at 217 782-6045 or email rev[email protected]v. If granted

and unless renewed, this waiver shall not exceed two years.

What if I fail to ﬁle or pay the amount I

owe?

You owe a late-ﬁling penalty if you do not ﬁle a processable

return by the due date, a late-payment penalty if you do

not pay the amount you owe by the payment’s due date, a

bad check penalty if your remittance is not honored by your

ﬁnancial institution, and a cost of collection fee if you do not

pay the amount you owe within 30 days of the date printed on a

bill. Interest is calculated on tax from the day the payment was

due through the date you pay the liability. We will bill you for

penalty and interest. For more information, see Publication 103,

Penalty and Interest for Illinois Taxes, which is available on our

website at tax.illinois.gov.

In addition, you will not be entitled to any discounts. See

410 ILCS 705/60-20 for more information.

What if I need help?

Visit our website at tax.illinois.gov, call us weekdays between

8:00 a.m. and 4:00 p.m. at 217 782-6045, or email us at:

rev[email protected]v.

Form CC-1 General Information

Illinois Department of Revenue

CC-1 Instructions (N-12/19) Printed by the authority of the state of Illinois, web only-1

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.

For multiple site businesses, use Schedule CC-2, Multiple Site

Form for Adult Use Cannabis Cultivators, to report sales of

adult use cannabis subject to the Cannabis Cultivation

Privilege Tax from each cultivation site for your business during

the filing period. You will need to complete Schedule CC-2

before completing Form CC-1. See Schedule CC-2

instructions. Submit Schedule CC-2 when you file Form CC-1.

Step 1: Figure your taxable receipts from

adult use cannabis sold

Note: Do not include medical cannabis sales.

Note: For each line, include amounts from all sites, if

applicab

le.

Line 1 - Enter the total receipts from adult use cannabis sold

before any deductions.

Line 2a - Enter the amount you refunded for returned adult use

cannabis products.

Line 2b - Enter the total receipts from sales of adult use

cannabis in which the Cannabis Cultivation Privilege Tax has

been paid previously.

Line 2c - Enter the amount of tax reimbursement collected on

receipts of adult use cannabis sold.

Line 2d - Describe any other deductions that you are claiming

and enter the amount you are deducting.

Line 2 - Add Lines 2a, 2b, 2c and 2d. This is your total

deductions from adult use cannabis sold.

Line 3 - Subtract Line 2 from Line 1. This is your taxable

receipts from adult use cannabis sold.

For multiple site businesses, this amount should be equal to

the sum of Line 3 totals on all Schedules CC-2. (See CC-2

instructions for more information).

Step 2: Figure your Cannabis Cultivation

Privilege Tax due on adult use cannabis

Line 4 - Multiply Line 3 by 7 percent (.07). This is your

Cannabis Cultivation Privilege Tax due.

Line 5 - If you ﬁle your return and pay the amount due by

the due date, you are entitled to a discount. Enter the lesser

of the product of Line 4 multiplied by 1.75 percent (.0175) or

$1,000.00, only if you ﬁle your return and pay the amount due

by the due date. Otherwise, enter ‘0’.

Note: The discount is only valid for electronically ﬁled returns

and electronic payments, unless a payment waiver is in place.

Line 6 -Subtract Line 5 from Line 4. This is your net Cannabis

Cultivation Privilege Tax due.

Line 7 - Enter the sum of all quarter-monthly (accelerated)

payments that were made for the ﬁling period of the return.

Line 8 - Subtract Line 7 from Line 6. This is your Cannabis

Cultivation Privilege Tax due after quarter-monthly payments.

Line 9 - If you collected more Cannabis Cultivation Privilege

Tax than is due, enter the amount of excess Cannabis

Cultivation Privilege Tax that was collected.

Line 10 - Add Lines 8 and 9. This is your total Cannabis

Cultivation Privilege Tax due.

Line 11 - If you have a credit memorandum or prior

overpayment and you wish to use it toward what you owe, enter

the amount you are using.

Line 12 - Subtract Line 11 from Line 10. This is your total

payment due. We will bill you for any penalty and interest

amounts owed. See Publication 103, Penalties and Interest for

Illinois Taxes, for more information.

Speciﬁc Instructions

CC-1 Instructions (N-12/19) Printed by the authority of the state of Illinois, web only-1