Woodmere urges state legislators to release cannabis tax funds owed to local municipalitie

June 13, 2025

WOODMERE, Ohio — The village is calling on the Ohio General Assembly to fulfill its promise to municipalities that host adult-use cannabis dispensaries by releasing the funds collected through the state’s cannabis excise tax.

On Wednesday (June 11), Village Council passed a resolution — strongly supported by Mayor Ben Holbert — urging lawmakers to appropriate and distribute the Host Community Cannabis Fund as originally intended.

Despite Ohio generating more than $20 million since the passage of Issue 2, none of the revenue has reached local governments, according to a news release from the village.

Issue 2 legalized recreational marijuana statewide in November 2023. The initiated statute took effect Dec. 7, 2023.

“When Ohio voters approved Issue 2, the deal was clear: If communities agreed to host dispensaries, they would share in the economic benefits,” Holbert said in the news release.

“Woodmere held up its end of the bargain. Now we’re asking the state to do the same.”

Woodmere is home to a licensed adult-use dispensary: AYR Dispensary at 27900 Chagrin Blvd. As a result, it is entitled to an estimated $175,000 annually from the state, according to the news release.

These funds would directly support Chagrin Boulevard road widening, senior services, public safety and community engagement programs, the release stated.

But the legislature has yet to act, and new proposals threaten to reduce or eliminate the fund altogether, leaving small municipalities like Woodmere financially shortchanged.

Recent legislative proposals have suggested reducing, capping or eliminating the cannabis fund, thereby depriving Woodmere and other municipalities of critical revenue sources, the resolution states.

“We’re not asking for a windfall; we’re asking for what was promised,” Holbert said in the news release.

“These dollars were meant to create a win-win: drive economic development and reinvest in the community. Right now, that vision is at risk.”

The resolution directs the village clerk to send certified copies to Gov. Mike DeWine, legislative leaders and the Ohio Municipal League, stressing the urgent need for action.

Read more from the Chagrin Solon Sun.