NORWOOD, Ohio — Nearly nine months after recreational marijuana sales began in Ohio, municipalities hosting recreational dispensaries are still waiting to learn what share of the tax revenue, if any, they’ll receive.

Consumers have purchased more than $479 million in recreational products from local dispensaries since sales began, according to the state’s Division of Cannabis Control.

What did voters approve? 

When Ohio voters approved recreational marijuana, they established a tax distribution plan for the 10% excise tax:

• 36% to the cannabis social equity and jobs fund 
• 36% to the host community cannabis facilities fund 
• 25% to the substance abuse and addiction fund 
• 3% to the Division of Cannabis Control and the tax commission fund

What did the House change?

The state House recently passed a budget that would restructure what happens with the 10% excise tax:

• 20% to the host community cannabis fund 
• 80% to the general fund

After five years, the host community fund would be eliminated entirely.

What are Senators saying?

The WCPO I-Team asked two senators on the Senate Finance Committee for their response to the changes. Both wanted to see host communities made whole.

“For us now, to go into these communities and say we’re going to change the rules on you is wrong,” said Sen. George Lang, a Republican from West Chester.

Hear from local city leaders about why this is frustrating for them:

“They made a business decision based on a set of rules that was voted on by the taxpayers, and I think we need to honor that,” he said.

Senator Bill Blessing, representing Ohio’s 8th Senate District, is working on a compromise amendment that would increase the excise tax from 10% to 15%, creating a larger revenue pool that would preserve the host communities’ share and allow for other budget priorities.

“My overall goal with this is to simply listen to all of the host communities and potential host communities in Hamilton County, and they have been overwhelmingly united against what the house is proposing,” Blessing said.

The senator suggested the uncertainty around tax distribution for host communities might be intentional from lawmakers opposed to legal cannabis.

“You could argue that that’s a feature and not a bug if your overall mindset is to not have recreational marijuana in Ohio,” Blessing said. “I get that some of my colleagues have major problems with recreational marijuana, but it was passed popularly at the ballot.”

Local communities left waiting

The city of Norwood had hoped to use cannabis tax money from its two dispensaries to repair potholes, upgrade infrastructure and improve public safety, but discussions around those plans are now on hold.

Cannabis tax revenue to the city could range between $150,000 and $200,000 annually, said James Bonsall, treasurer for the City of Norwood.

“That’s extremely important, that can pave multiple streets every year having that money,” Bonsall said.

But despite the benefits, Norwood leaders are not including these funds in their budget planning.

“We can’t do that without the assurances that the money is coming, and right now there’s a lot of uncertainty,” Bonsall said.

The treasurer said it all goes back to honoring the intent of the voters.

“It was very clear what they were voting for,” he said.