“Potential Loss of Host Community Cannabis Fund Revenue: Ohio Municipalities Give Their Two Cents”

The title of this post is the title of this new report, authored by Jana Hrdinova, Maria M. Orsini and Dexter Ridgway, from the the Drug Enforcement and Policy Center at The Ohio State University Moritz College of Law.  Here is part of the paper’s introduction:

When Ohio voters legalized adult-use marijuana in November 2023, they voted not only for the right to legally purchase and use marijuana, but also for how to spend resulting tax revenue.  The ballot measure passed by voters directs 36% of the 10% marijuana tax to municipalities that host adult-use dispensaries.  However, while tax revenue has been collected since the start of legal sales in August 2024, it has not yet been dispersed because the ballot measure did not include appropriation language.  The Ohio legislature could pass an appropriation for these funds at any time but has not yet chosen to do so.

Shortly after the election, Ohio lawmakers began their efforts to change the law passed by voters, including the approved tax revenue allocations.  To date, the 136th session of the Ohio General Assembly has seen the introduction of three bills that would change the current adult-use marijuana statute in various ways, including the marijuana tax revenue allocation to localities…. 

To assess the impact of these proposed revenue allocation changes, we contacted the majority of municipalities that currently host a dispensary and asked them a simple question: “Would you be able to share how you planned to use any expected marijuana tax revenue and how would the elimination of such funds impact your city?”  This report compiles the responses we received, highlighting potential effects on Ohio communities.