Marijuana generates nearly $1 billion in taxes in Ohio. Now figuring out how to spend it.

Yahoo

a day ago

COLUMBUS, Ohio (WCMH) — Recreational marijuana sales were made legal a year ago this week and since then, Ohio has collected nearly $1 billion in taxes from those sales.
State lawmakers are working to find ways to spend that money. Last week, new legislation was introduced that has lawmakers talking about what would be the most effective way to allocate tax revenue from Ohio's growing cannabis industry.
The new legislation, Senate Bill 240, would let counties impose a local cannabis tax and use that money for community, culture, and entertainment projects.
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One of the bill's sponsors, Ohio Sen. Hearcel Craig (D-Columbus), said the legislation is an effort to maintain the spirit of what voters passed, referring to 2023's Issue 2.
'Where there are taxing provisions like this one with the arts, that can have meaningful community benefit,' Craig said. 'I think the public could be in agreement with that.'
One caveat to Senate Bill 240 is that the taxing provisions would only go into effect if the residents voted for it.
'I think this is an opportunity if the counties and the municipalities, if they choose to do it,' Craig said.
A competing bill looks to reallocate 36% of the tax revenue to a general revenue fund. Senate Bill 56 would give lawmakers control of where that money goes. It also calls for further regulations, including decreasing THC levels.
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'The thought process is to put it in the general revenue, is to make it fluid that we could, you know, there's been proposals out there that we should put a certain percent towards county jails and certain percent to law enforcement training and stuff like that,' Senate Bill 56 sponsor, Ohio Sen. Steve Huffman (R-Tipp City), said.
Huffman points out that even though Senate Bill 240 would give voters the option for the additional tax, it may drive marijuana users out of Ohio for their next purchase.
'With all these taxes, we're dancing a very fine line of driving people, one, to the illicit market, and number two, out of state,' he said. 'The current plan with the senate and the house is to keep the tax rate the same, which is 10%, which is important.'
Darius Walters is a part of the staff at Nar Reserve, a dispensary. He criticized both bills, citing many users may have different ideas of where that money should be distributed overall.
'Definitely an education and some school fund, roads, any type of community-based scholarship or grant, or for small businesses expand,' Walters said. 'So that the average person, the everyday person, can take advantage of it.'
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He also expressed understanding of the process and is hopeful there will be room for lawmakers to come together and reach an outcome that serves everyone.
'There's definitely a happy medium or a balance when it comes to the taxes and them being able to have a general fund for different things because it can't necessarily be a bad thing to at least be able to access the funds,' Walters said.
Both Huffman and Craig said they look forward to further discussing both pieces of legislation later in the year.
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