LAKEWO0D — With the smoke clearing around the finances behind recreational marijuana use, the Ohio Department of Taxation recently began distributing tax revenue to host cities.

The passage of State Issue 2 established a statute by which Ohio imposes a 10 percent tax on adult use cannabis, with 36 percent of the tax revenue directed to the Host Community Cannabis Fund.

The first disbursement is nearly $36 million.

It reflects taxes collected since dispensaries were allowed to open in 2024. Lakewood is home to two dispensaries.

With Lakewood recently receiving $743,400 — including an expectation to receive $500,000 annually as long as the city maintains profitable dispensaries within city limits — City Council plans on creating a Host Community Cannabis Fund.

“We’ve been looking forward, but weren’t sure if or when we were going to be receiving these funds, because the state was a little slow to distribute them,” City Council President Sarah Kepple said.

“So we’re finally seeing that Lakewood is going to be receiving our first distribution of those funds.”

Due to the uncertainty of disbursement, Kepple said the funds weren’t included in the 2026 budget allocations.

That’s why she and City Council Vice President Kyle Baker decided to create the Host Community Cannabis Fund.

“This lets us prioritize how we want to use these funds for our community,” she said.

The current discussion — expected to be decided this winter into early spring — includes public safety and accessibility capital priorities attached to the city’s Complete and Active Streets and ADA Transition Plan.

There’s even talk about using the money toward creating equitable locker room space for female police officers.

The latter is also tied to the possibility of City Hall being relocated to a former board of education building on Warren Road.

“These funds could get us started with the design element,” Kepple said.

“And I would envision, if we do not go with the Warren Road solution, these funds could be used to look at renovating and expanding at the current property.”

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