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Yahoo
5 days ago
- Business
- Yahoo
Marijuana generates nearly $1 billion in taxes in Ohio. Now figuring out how to spend it.
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. Ohio's recreational marijuana sales double medical sales, per daily averages 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. Wedding chimes bong for Ohio couple getting married at cannabis festival '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.' Ohio State soccer player back on field after being shot 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. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Solve the daily Crossword
Business Wire
12-08-2025
- Business
- Business Wire
KBRA Assigns AA+ Rating to San Francisco Bay Area Rapid Transit District's (CA) Sales Tax Revenue Bonds 2025 Refunding Series A; Affirms Outstanding Senior Lien and Junior Lien Sales Tax Obligations at AA+ and AA; Stable Outlook
NEW YORK--(BUSINESS WIRE)--KBRA assigns a long-term rating of AA+ to the San Francisco Bay Area Rapid Transit District's (the "District") Sales Tax Revenue Bonds 2025 Refunding Series A. Additionally, KBRA affirms the long-term rating of AA+ and AA for the District's outstanding Senior Lien Sales Tax Revenue Bonds and Junior Lien Sales Tax Obligations (TIFIA loan), respectively. The rating Outlook is Stable. Key Credit Considerations The rating was assigned and affirmed because of the following key considerations: Credit Positives Pledged sales tax revenues provide ample proforma coverage of maximum annual debt service (MADS) requirements for the senior lien sales tax revenue bonds and the junior lien TIFIA Loan. Sales taxes are generated within a sizable, diverse, and resilient economic base. Gross revenue pledge with sales taxes collected by the California Department of Tax and Fee Administration and is directly deposited with Trustee. Credit Challenges Bonds are solely secured by sales taxes, which may at times be adversely affected by economic factors. While not anticipated, there is the potential for legislative changes to the transactions and items subject to the State's general sales tax which could negatively affect pledged sales tax revenues. Rating Sensitivities For Upgrade Sustained and material improvement in the sales tax revenue trend which boosts debt service coverage. For Downgrade Significant secular economic downturn or material outmigration that results in sharp reductions in pledged sales tax revenues and debt service coverage. To access ratings and relevant documents, click here. Methodologies Public Finance: U.S. Special Tax Revenue Bond Rating Methodology ESG Global Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010784
