(The Center Square) – For cities and towns in Ohio that have allowed recreational marijuana dispensaries, it’s payday time.
A 10% tax on cannabis products, approved by Ohio voters in 2023, goes to cities and towns with dispensaries at 36% rate of the tax revenue, according to state law.
This month, cities and towns with dispensaries are receiving their first checks, a total of $33 million.
The city of Piqua is one of those, with a check for $438,000, which it plans to use for park improvements.
“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,” city manager Paul Oberdorfer said in a statement.
A small town called Seven Mile Village, which has a population of only 712 people and an annual budget of about $75,000, received a check for $400,000, State Sen. Steve Huffman, R-Tipp City, told The Center Square.
Huffman, a medical doctor, opposed legalizing recreational marijuana in Ohio but once it was approved by voters, sponsored legislation that established regulations for dispensaries and a mechanism for distributing some of the tax revenues to local governments.
“The people have spoken,” Huffman said of the 2023 referendum. “I’m proud to see this funding distributed across Ohio and look forward to seeing the ways these funds will benefit local communities.”
There were proposals to tax recreational marijuana as high as 20%, Huffman said. But the lawmakers settled on 10%.
“If you tax something too high, then people will go to the illicit market,” the senator said. “We’re trying to provide a safe avenue for people.”
The revenue checks may convince cities and towns that rejected marijuana dispensaries to reconsider, Huffman said.
“There are jurisdictions that have buyer’s remorse,” he said. “They may be wishing they had a dispensary so that they would have gotten some of that tax money.”
It’s not too late. There are currently 176 marijuana dispensaries in Ohio but state law allows up to 400.
“Those governments that have moratoriums can revoke them and make that decision to bring in the business,” Huffman said.
