The approval of recreational marijuana in Ohio last November has led to significant anticipation for tax revenue distribution among cities and townships. However, local officials are growing increasingly frustrated as the state has yet to release these funds. While millions have been collected, the legislative process has stalled, leaving communities uncertain about their expected financial benefits.

Legislative Hurdles Delay Tax Distribution

Despite voter-approved measures, Ohio cities like Akron are still waiting for promised marijuana tax revenues. The state auditor's office has advised cities to budget for these funds, but no disbursements have occurred. This uncertainty has raised concerns among city councils and finance directors who are planning their budgets around anticipated income.

The law mandates a 10% tax on all marijuana sales, with 36% allocated to municipalities hosting dispensaries. Over $30 million in taxes has been collected since August, but lawmakers have not yet authorized distribution. State officials cite confidentiality as a reason for not disclosing individual city allocations. Cleveland, for instance, expects around $410,000 in 2024, but this remains uncertain due to ongoing debates about how to allocate the funds.

City Officials Express Concerns Over Changing Regulations

Local government leaders feel let down by the delay in receiving tax revenues. Some cities agreed to host dispensaries based on promises of future income, only to face potential changes in legislation. This shift has left them questioning the reliability of state partnerships. Akron Mayor Shammas Malik, however, remains optimistic about the overall impact of the marijuana industry on his city’s economy.

Republican legislative leaders have shown sympathy towards the cities' plight. Senate President Rob McColley and House Speaker Matt Huffman acknowledge the challenges faced by local governments and the importance of adhering to the original agreement. The debate over increasing the tax rate and redirecting funds continues, with potential implications for both state and local finances. As negotiations proceed, cities hope for a resolution that honors the initial commitment made to them.