State withholds $10.8M of recreational marijuana tax revenue from cities
CLEVELAND (WJW) – A hazy cloud surrounds the distribution of tax revenue generated from recreational marijuana sales in Ohio.
The state plans to hold onto more than $10.8 million, funds due to municipalities, according to recreational marijuana law.
The funds are more than likely not coming due to a legal language issue left out of Issue 2, according to the office of Governor Mike DeWine.
'Issue 2 as passed did not appropriate any funds to cities,' press secretary Dan Tierney said via email. 'We understand the frustration of being told this by those who drafted Issue 2 and coming to find out Issue 2 did not contain appropriations of funds the drafters promised any government entity.'
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Cannabis is taxed at 10% in Ohio and 36% of tax revenue generated goes to municipalities who opted-in, allowing dispensaries under the framework of Issue 2.
Since it was legalized, more than $30 million in tax revenue has been generated through February, which means $10.8 million should be going to municipalities.
The city of Cleveland believes it should receive $410,000 for 2024, using rough estimates based on the six dispensaries in the city.
There are 128 dispensaries across Ohio.
DeWine aims to re-appropriate this tax revenue in the Fiscal Year 2026 Operating Budget, redirecting it to combat the ills of drug use.
'The governor's proposal uses these funds to help improve local jails, fund the 988 behavioral health crisis hotline, provide law enforcement training and other priorities,' Tierney said. 'The state funding these priorities will free up local funds for other purposes and local priorities.'
Many municipalities planned to include these funds in their city budgets.
'The state is talking about changing the rules in the middle of the game,' Ohio Municipal League Director Kent Scarrett said.
The Ohio Municipal League is an organization representing 732 of close to 900 cities and villages in Ohio.
Scarrett said many municipalities would not have added the dispensaries if they weren't going to get a fair share of the tax revenue generated.
'I think that there's some cross current activity in the legislature that wants to undermine the whole system,' Scarrett said.
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DeWine also proposes raising the tax rate from 10 to 20%.
'This legislature really isn't really fond on increasing taxes unless they want to discourage an activity in the state,' Scarrett said.
The Ohio Senate and House plan to make changes to adult use cannabis law through Senate Bill 56.
Many people who spoke to FOX 8 off camera told us they oppose these changes, which undermine the will of the people who strongly voted for the framework of Issue 2.
The city of Lakewood said it is unsure if it will receive any tax revenue from recreational marijuana sales and are awaiting the state legislature's decisions in the budget.
On March 3, Lakewood City Council and the mayor passed a resolution opposing the effort to repeal the Host Community Cannabis Fund.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Contacts For Shareholders: Carson Proxy North American Toll-Free Phone: 1-800-530-5189 Local or Text Message: 416-751-2066 (collect calls accepted) E: [email protected] For Media: [email protected] This solicitation is being made by and on behalf of the Concerned Shareholder, who, as of the date of this Circular, beneficially owns or controls, directly and indirectly through its wholly-owned subsidiary, Nobul Technologies Inc., 12,491,500 common shares of the Company ('Common Shares'), representing approximately 3% of the total Common Shares issued and outstanding, and not by the management of the Company ('Management'). Legal Disclosures Information in Support of Public Broadcast Exemption under Canadian Law In connection with the annual general and special meeting (the 'Annual Meeting') of shareholders of MediPharm, Apollo Capital has filed an amended and restated dissident information circular dated May 15, 2025 (the 'Circular'), as amended and supplemented by an addendum to the Circular subsequently filed by the Concerned Stakeholder dated June 4, 2025 (the 'Addendum' and together with the Circular, the 'Amended Circular'), each in compliance with applicable corporate and securities laws. The Concerned Stakeholder has provided in, or incorporated by reference into, this press release the disclosure required under section 9.2(4) of NI 51-102 – Continuous Disclosure Obligations ('NI 51-102') and the corresponding exemption under the Business Corporations Act (Ontario), and has filed the Amended Circular, available under MediPharm's profile on SEDAR+ at The Amended Circular contains disclosure prescribed by applicable corporate law and disclosure required under section 9.2(6) of NI 51-102 in respect of the Concerned Stakeholder's director nominees, in accordance with corporate and securities laws applicable to public broadcast solicitations. The Amended Circular is hereby incorporated by reference into this press release and is available under MediPharm's profile on SEDAR+ at The registered office of the Company is 151 John Street, Barrie, Ontario, Canada L4N 2L1. 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Proxies may be revoked in accordance with subsection 110(4) of the Business Corporations Act (Ontario) by a registered shareholder of Company shares: (a) by completing and signing a valid proxy bearing a later date and returning it in accordance with the instructions contained in the accompanying form of proxy; (b) by depositing an instrument in writing executed by the shareholder or by the shareholder's attorney authorized in writing; (c) by transmitting by telephonic or electronic means a revocation that is signed by electronic signature in accordance with applicable law, as the case may be: (i) at the registered office of the Company at any time up to and including the last business day preceding the day the Annual Meeting or any adjournment or postponement of the Annual Meeting is to be held, or (ii) with the chair of the Annual Meeting on the day of the Annual Meeting or any adjournment or postponement of the Annual Meeting; or (d) in any other manner permitted by law. 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Anteris Advisors, LLC ('Anteris') has also been retained by Apollo Capital to act as strategic consultant to provide the Concerned Stakeholder with certain activism strategy, material creation and strategic communications services, for which Anteris will receive, from Apollo Capital, a minimum fee of US$100,000 in addition to a success fee of US$100,000 in the event that one or more of the Concerned Stakeholder's nominees are appointed or elected to the Board following the Annual Meeting or as a result of any settlement or arrangement, plus excess fees, related costs and expenses. No member of the Concerned Stakeholder nor any of their respective associates or affiliates has or has had any material interest, direct or indirect, in any transaction since the beginning of the Company's last completed financial year or in any proposed transaction that has materially affected or will or would materially affect the Company or any of the Company's affiliates. No member of the Concerned Stakeholder nor any of their respective associates or affiliates has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Annual Meeting, other than setting the number of directors and the election of directors to the Board. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward‐looking statements. All statements contained in this filing that are not clearly historical in nature or that necessarily depend on future events are forward‐looking, and the words 'anticipate,' 'believe,' 'expect,' 'estimate,' 'plan,' and similar expressions are generally intended to identify forward‐looking statements. These statements are based on current expectations of the Concerned Stakeholder and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. All forward-looking statements contained herein are made only as of the date hereof and the Concerned Stakeholder disclaims any intention or obligation to update or revise any such forward-looking statements to reflect events or circumstances that subsequently occur, or of which the Concerned Stakeholder hereafter becomes aware, except as required by applicable law. Hashtags: #ShareholderActivism #CorporateGovernance #InvestorProtection #Investor Alert #Investor Fraud #FinancialRegulation #CorporateCrime #FinancialCrime #HomelandSecurity #DHS #OpioidCrisis #OpioidEpidemic #OpioidLitigation #OpioidVictims #BMO #DEA #ONDCP
