Ohio Cities Receive First Cannabis Tax Revenue Checks, Totaling $33 Million, To Fund Local Programs And Services
Ohio cities and towns with recreational marijuana dispensaries are receiving their first allocations from the 10 percent cannabis excise tax approved by voters in 2023, with 36 percent of the collected revenue directed to municipalities hosting dispensaries. The total disbursement this month amounts to $33 million, providing a substantial infusion of funds for local programs and infrastructure projects.
Piqua Plans To Use $438,000 Cannabis Revenue Check For Park Improvements
The city of Piqua, one of the municipalities receiving funding, will use its $438,000 check for park improvements, according to city manager Paul Oberdorfer. “Local governments—including Piqua—decided to allow recreational marijuana sales within their communities based on the understanding that funds would come back to local control to best serve the individual needs of the community,” Oberdorfer said in a statement.
Small Towns Benefit Significantly From Cannabis Tax Revenue, Examples Include Seven Mile Village
Even small towns are seeing significant financial benefits. Seven Mile Village, a community of only 712 residents with an annual budget of approximately $75,000, received $400,000 from the state’s cannabis tax distribution. State Senator Steve Huffman, R-Tipp City, highlighted the transformative potential of these funds for small communities.
Senator Steve Huffman Reflects On Role In Crafting Marijuana Tax Distribution Legislation
Although a medical doctor who opposed recreational marijuana legalization in Ohio, Huffman sponsored legislation to establish regulations for dispensaries and create a mechanism for distributing tax revenues to local governments once voters approved the 2023 referendum. “The people have spoken,” Huffman said. “I’m proud to see this funding distributed across Ohio and look forward to seeing the ways these funds will benefit local communities.”
Lawmakers Opted For A 10 Percent Cannabis Excise Tax To Deter Black Market Purchases
Huffman explained that lawmakers considered higher taxation levels of up to 20 percent but ultimately settled on a 10 percent rate. “If you tax something too high, then people will go to the illicit market,” Huffman said. “We’re trying to provide a safe avenue for people.”
Cannabis Revenue Could Influence Jurisdictions That Previously Rejected Dispensaries
Some municipalities that initially opted out of hosting dispensaries may now reconsider in light of the revenue potential. Huffman noted, “There are jurisdictions that have buyer’s remorse. They may be wishing they had a dispensary so that they would have gotten some of that tax money.”
Ohio Cannabis Market Still Growing With Room For Up To 400 Dispensaries Statewide
Currently, Ohio has 176 operational marijuana dispensaries, though state law allows for up to 400. As more cities and towns authorize dispensaries, the flow of tax revenue to local governments is expected to increase, providing further funding for infrastructure, public services, and community programs.
Cannabis Tax Revenue Provides Substantial Local Benefits While Influencing Policy Decisions
The first round of cannabis tax distributions highlights the tangible financial benefits of legalized recreational marijuana for Ohio communities. From major cities like Piqua to small villages like Seven Mile, these funds are already earmarked for projects that directly impact residents. The new revenue may also influence local decision-making regarding future dispensary approvals, potentially expanding the market while enhancing municipal budgets and services across the state.
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