A pitch for how the Buckeye State should plan to use marijuana green

When Ohio voters approved full legalization of marijuana in November 2023 through passage of Issue 2, the initiative included a specific tax rate and a defined allocation for marijuana tax revenues.  Perhaps unsurprisingly, as members of the Ohio General Assembly have discussed further marijuana reforms, both the tax rates and allocation of revenues have been a subject of debate. Bailey Williams of Policy Matters Ohio has authored this helpful new blogpost on this topic titled “Cannabis tax revenue can help communities. Legislators have other ideas.” I recommend the full piece, and here is an excerpt:

Over two million Ohioans voted to legalize marijuana sales and use tax revenue from those sales to benefit communities where dispensaries are located (called “host communities”), fund substance-abuse research, and create restorative justice programs to remediate some of the harm done by the war on drugs.  Changes by the legislature should focus on regulating the market to ensure product safety or improving the collection and use of tax revenue to redress racial disparities created by the discriminatory enforcement of recreational marijuana prohibition.  Any other changes to the statute risk subverting the will of the voters.

Ohio lawmakers have floated two such changes, both of which should be rejected: Tax revenues from legal marijuana sales should not be used to fund broad rate cuts to the state income tax, nor should they be earmarked for policing.  Either change would divert funding that should be used to help those harmed by the failed war on drugs, and clear the criminal records of Ohioans being punished for actions that are no longer crimes….

The Ohio Senate has already passed changes to state marijuana laws. These changes include raising the tax levied in addition to the state sales tax on legal sales from 10% to 15%; diverting hundreds of millions of dollars away from restorative justice programs and communities that host dispensaries and into policing and jails; tighter restrictions on home growth of marijuana; and piecemeal funding for expungement efforts for marijuana-related offenses that are no longer illegal.

The Ohio House has not yet proposed its version of the changes, but representatives have expressed some priorities.  At least one has proposed using a portion of the tax revenue raised from marijuana sales to finance broad income tax rate cuts.  This policy choice should be rejected now and in the future.  Broad cuts to income tax rates typically result in the wealthiest taxpayers receiving most of the value of the cut….

Similarly ill-conceived is the idea — recommended by members of both chambers and included in the Senate bill — of earmarking marijuana tax revenue specifically for policing.  The Senate would divert over $200 million a year in tax revenue from marijuana sales into investigative unit and drug task force operations, police officer training, and the construction of new jails.  This ignores the fact that Issue 2 already takes into consideration any increase in policing needs that may arise from the end of recreational marijuana prohibition.  Localities that host marijuana dispensaries will receive tax revenue from that business; this revenue can be spent on policing if need be. It also could be used on other public goods, such as parks and public transit.  Communities should be able to decide for themselves how that funding is used….

Clearing criminal records for what is now legal marijuana possession is an important step toward restorative justice.  Issue 2 required and funded research on expungement and record sealing but did nothing to simplify the often cumbersome process.  Ohioans seeking to expunge or seal their marijuana convictions face a waiting period and possible prosecutorial objections, and may be required to pay expensive legal fees and court costs.  They must also prove they are rehabilitated before they can have their records officially expunged.  These Ohioans are often subject to collateral sanctions, which limit an individual’s earning potential and increase the likelihood of recidivism….

When Ohioans overwhelmingly passed Issue 2, we sent a clear message to our representatives in Columbus: Legalize the sale of recreational cannabis, and use the revenue it generates to help the people and communities harmed by the failed war on drugs.  Some representatives appear poised to disregard those explicit instructions — as they have done with increasing frequency.  There are better options available; our representatives should listen to the voters.