CLEVELAND – A hazy cloud surrounds the distribution of tax revenue generated from recreational marijuana sales in Ohio.
The state plans to hold onto more than $10.8 million, funds due to municipalities, according to recreational marijuana law.
The funds are more than likely not coming due to a legal language issue left out of Issue 2, according to the office of Governor Mike DeWine.
“Issue 2 as passed did not appropriate any funds to cities,” press secretary Dan Tierney said via email. “We understand the frustration of being told this by those who drafted Issue 2 and coming to find out Issue 2 did not contain appropriations of funds the drafters promised any government entity.”
Cannabis is taxed at 10% in Ohio and 36% of tax revenue generated goes to municipalities who opted-in, allowing dispensaries under the framework of Issue 2.
Since it was legalized, more than $30 million in tax revenue has been generated through February, which means $10.8 million should be going to municipalities.
The city of Cleveland believes it should receive $410,000 for 2024, using rough estimates based on the six dispensaries in the city.
There are 128 dispensaries across Ohio.
DeWine aims to re-appropriate this tax revenue in the Fiscal Year 2026 Operating Budget, redirecting it to combat the ills of drug use.
“The governor’s proposal uses these funds to help improve local jails, fund the 988 behavioral health crisis hotline, provide law enforcement training and other priorities,” Tierney said. “The state funding these priorities will free up local funds for other purposes and local priorities.”
