Reparations in Evanston, Illinois
The city of Evanston, Illinois, recently distributed $25,000 in reparations to 44 residents. This initiative, part of their ongoing reparations program, faces challenges as city officials search for additional funding sources.
During previous discussions, committee members highlighted an income shortfall stemming from low sales at the city’s cannabis dispensaries. “When you tax something heavily, it discourages customers from buying it,” noted Tiffany Ingram, the executive director of the Illinois Cannabis Business Association. She elaborated that many customers turn to neighboring states or even the illicit market for alternatives.
The city has decided to allocate the first $10 million collected from a municipal cannabis retail occupancy tax, which is set at 3%, towards financing the reparations program.
Ingram remarked that it’s noteworthy to see how different local governments utilize cannabis revenue to enhance their communities and mentioned that Evanston was pioneering in this regard.
In addition to cannabis tax revenue, the city’s real estate transfer tax ordinance could also be tapped for funding the reparations program. According to a city memo, $276,588 was generated from real estate transfer taxes recently.
The reparations fund has mainly relied on income from cannabis sales and real estate taxes, with reports indicating minimal charitable donations. As of January 31 this year, only $1,010 in donations had been contributed, although there are signs of increased donations by September, projected to be around $55,956.22 by then.
Evanston made headlines in November 2019 when it became the first U.S. city to implement a reparations plan, which promised $10 million over a decade. The program, affirmed by the City Council in 2021, provides direct payments of $25,000 to Black residents and their descendants who lived in Evanston from 1919 to 1969.
As the committee investigates revenue generation options, they discussed enacting a tax on Delta 8 products. Councilor Chrissy Harris acknowledged that, while a tax might not drastically increase revenue, it could be beneficial in maintaining the reparations program. “It’s crucial for people to understand that these payments are possible because we do have the money; we’re just ensuring we can sustain them,” Harris stated.
To date, 137 residents have received compensation, totaling $3.47 million, and estimates suggest that the number of recipients could rise to 171, with anticipated funding reaching around $4 million by year’s end. This is indicative of an ongoing commitment to supporting the descendants of those historically marginalized.
Evanston’s City Attorney, Alexandria Ruggie, informed that cities have the authority to impose taxes on Delta 8 products, although she cautioned that the revenue from such a tax would likely be limited. Concerns were also raised about the regulation of Delta 8 products, which are viewed by some as potentially hazardous due to their potency compared to regulated marijuana.
Ingram emphasized the necessity of consumer protection before discussing taxation on these unregulated products. Meanwhile, the Illinois Cannabis Business Association has called for a ban on the sale of these products within Chicago, prioritizing public safety.
In a related legal situation, the conservative group Judicial Watch filed a lawsuit against Evanston, seeking to prevent the city from making restitution payments to Black residents. The $25,000 allocated to residents aims to address housing-related challenges, arising from historical city policies that caused housing discrimination between 1919 and 1969.
The reparations initiative encompasses various strategies to right past wrongs, prioritizing housing alongside other community needs identified by residents during a 2019 meeting. These included areas such as economic development, education, and cultural heritage.
