Ohio Localities Oppose GOP-Backed Changes To Voter-Approved Marijuana Tax Revenue Allocations, New Report Finds

Local governments in Ohio are “unequivocally opposed” to lawmaker-proposed adjustments to marijuana tax income allocations authorised by voters in 2023. That’s in keeping with a brand new research printed by the Ohio State University’s (OSU) Moritz College of Law representing 38 municipalities throughout the state.

When voters legalized adult-use cannabis in 2023, the regulation they handed included a 36 % allocation of marijuana tax income to native governments that host retail shops. But Republican-led laws at present earlier than lawmakers would make important cuts to these funds, which municipal representatives stated within the new report may result in tax will increase and layoffs.

Comments from officers surveyed as a part of the OSU research indicated that many localities at present plan to make use of the voter-approved allocations for public security and infrastructure.

“When it came to how municipalities planned to spend expected marijuana tax revenue, they typically spoke of prioritizing law enforcement, fire, infrastructure maintenance, and parks,” the report says. “They indicated that this revenue would be critical to their ability to maintain public safety and improve the lives of their residents.”

“Similarly, others expressed that they may not want to continue to have recreational sales in their area if the revenue was eliminated,” the report provides, “or that the revenue was part of the original motivation for wanting dispensaries.”

According to the brand new OSU report, municipalities that host dispensaries are anticipated underneath present regulation to divide roughly $22 million in fiscal 12 months 2025. That’s assuming Ohio hits state income of $62 million total.

In different phrases, authors wrote, every retail retailer would generate roughly $175,000 for host communities.

Ohio lawmakers have proposed altering a provision that directs a portion of #marijuana #tax income to municipalities that host dispensaries. Our survey requested host localities how these proposed adjustments would impression their communities. Read their two cents: https://t.co/XCvYSXfBHR pic.twitter.com/oTx3PJLRAz

— Drug Enforcement and Policy Center at Ohio State (@OSULawDEPC) March 18, 2025

Researchers recognized 75 localities that Division of Cannabis Control information confirmed was host to no less than one adult-use marijuana retailer, then gathered contact info for 159 officers like mayor and metropolis supervisor throughout 73 municipalities.

Overall, 38 localities offered responses to the survey.

“Any revenue we could receive from the marijuana sales would be beneficial in supporting many city services: police and fire protection, street maintenance, and other critical infrastructure projects,” stated an official from the town of Ravenna. “These funds would help us improve services for our residents and community and maybe even reduce the need for future tax increases.”

Another, from the town of Monroe, famous that the jurisdiction “was among the first municipalities to embrace the controversial introduction of medical marijuana and adult-use cannabis in a generally oppositional climate.”

“Monroe City Council took this step,” the official instructed authors, “with the vision that it would likely create a new revenue stream to help deliver services to our residents without imposing any additional burden on them.”

A consultant from Euclid expressed related sentiments: “I would say that part of our decision for allowing marijuana facilities in the community was due to the potential revenue. I view it [as] a broken promise if they change the host community fund provision.”

The metropolis of Milford, in the meantime, reported that anticipated tax income would enable them to take care of “fiscal stability and avoid drastic cuts to vital city services.”

So far three payments have been launched that may make main adjustments to the state’s hashish regulation. In their present varieties, two would amend native tax provisions.

A price range proposal from Gov. Mike DeWine (R) for fiscal years 2026 and 2027 would cast off the municipal allocations fully. (It would additionally double the state tax on marijuana, raising it to 20 percent.)

A separate invoice, HB 160, would cut back native allocations from 36 % to twenty %, and it will sundown the disbursements after 5 years.

As the OSU report notes, whereas marijuana income has been collected for the present 12 months, it has not been disbursed “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.”

As of March 10, it continues, the state has collected $37.6 million in marijuana excise tax.

Municipal officers instructed OSU researchers within the new survey that they felt native communities have been greatest positioned to determine methods to spend tax {dollars} collected for host localities.

“The City strongly feels that decisions on how best to use tax dollars are best made at the local level, where we are providing front-line services to our residents and businesses,” stated an official from Lebanon.

Another respondent, from Lorain, wrote: “I see the legislature thinks we didn’t know what we were voting for and are going to help us poor citizens. We do oppose the proposed move by the General Assembly, and the Governor, to once again impact the people’s wishes.”

The OSU research notes that regardless of the governor’s and GOP lawmaker’s efforts to amend how marijuana tax income is spent, they’ve given little clarification for the adjustments.

“In the case of the various proposed changes to the marijuana tax allocation, the Ohio General Assembly has not provided any policy rationale or reason as to why changes to the voter-approved allocations are needed,” the report says. “Various members of the General Assembly have suggested that voters simply did not understand or care about the specific details of Issue 2 when they voted for it, but the official ballot language that voters considered was quite explicit about the express tax allocations in the initiative.”

“The impacts of the proposed changes to the marijuana tax revenue allocation are significant for local governments and local communities that made decisions about allowing marijuana dispensaries based on the promise of future tax revenue,” it provides. Whether meaning cuts to public security, infrastructure, or parks, or a possible want for future tax will increase on native residents, municipal governments are unequivocally against the proposed adjustments to the unique marijuana tax income allocation to the Host Community Cannabis Fund.”

The House invoice that may have an effect on tax allocations, HB 160, is certainly one of a pair of bills introduced by Ohio Republicans this session that would make major changes to the voter-passed marijuana law. That measure, from Rep. Brian Stewart (R), and one other within the Senate—SB 56, from Sen. Steve Huffman (R)—each would additionally create new limits and felony penalties round authorized marijuana.

SB 56 initially included amendments to native tax allocations however in its present type doesn’t comprise tax provisions.

While the Senate invoice is seen as stricter in some methods—for instance, it will minimize in half the variety of vegetation adults may develop underneath the regulation—each payments would set THC limits on marijuana merchandise, weaken or get rid of fairness provisions and set a 350-shop restriction on retail throughout the state.

Advocates from drug reform and civil liberties groups held an event last week to encourage pushback on the two measures as well as the governor’s budget bill, with audio system from NORML, the Drug Policy Alliance (DPA), Marijuana Policy Project (MPP) and ACLU of Ohio describing them as efforts to undo the desire of voters.

Lawmakers may additionally nonetheless introduce different measures, famous Gary Daniels, chief lobbyist for ACLU of Ohio, and it’s additionally anticipated {that a} sweeping state price range invoice might be used to make adjustments to the hashish regulation. For instance, an elevated hashish excise tax was launched and later faraway from the Senate invoice, however an even steeper tax hike is now in the governor’s budget proposal.

Daniels added that Ohio voters are obsessed with hashish reform. While ACLU works on an array of points—free speech, non secular liberty, LGBT rights—he famous that “it seems that nothing activates Ohioans the same way as this particular issue.”

“The reception is, over the past couple years, much larger, much more robust than any of our other issues,” he stated.

Earlier this month, Ohio’s Senate president pushed again in opposition to criticism of SB 56, claiming that the legislation does not disrespect the will of the electorate and would have little impression on merchandise available in shops.

“My definitive message is: If you want to go purchase marijuana products from a licensed dispensary, that is going to be unchanged by Senate Bill 56,” Senate President Rob McColley (R) stated throughout a podcast look. “The only difference you’ll notice is the packaging may not look as appealing to children, but you’ll still be able to buy the same products.”

Critics within the statehouse, comparable to Sen. Bill DeMora (D), who spoke in opposition to the measure on the Senate ground, stated the plan “goes against the will of the voters and will kill the adult industry in Ohio.”

Separately within the legislature this month, Sens. Huffman and Shane Wilkin (R) launched legislation that would impose a 15 percent tax on intoxicating hemp products and limit their sales to adult-use dispensaries—not comfort shops, smoke outlets or gasoline stations.

“Currently, intoxicating hemp products are untested, unregulated psychoactive products that can be just as intoxicating, if not more intoxicating, than marijuana,” Wilkin stated in latest sponsor testimony to the Senate General Government Committee.

DeWine has repeatedly requested lawmakers to regulate or ban intoxicating hemp products such as delta-8 THC.

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