Municipalities across Ohio that allowed for recreational marijuana dispensaries following voter approval of Issue 2 in 2023 are beginning to receive adult-use cannabis excise tax revenue, though the state is also working to correct errors tied to the initial distribution.
The Ohio Department of Taxation began distributing nearly $36 million from the Host Community Cannabis Fund to local governments, reflecting taxes collected since dispensaries were allowed to open in 2024.
The department confirmed that errors affected the first round of distributions, with approximately $3.39 million – about 10 percent of the $33.2 million distributed for the month – sent to incorrect recipients. In total, 27 jurisdictions were impacted, including some that received funds they were not entitled to and others that received none of the revenue owed to them. The state is actively working with affected communities and expects corrections to be completed in early February.
Ohio imposes a 10 percent excise tax on those sales, with 36 percent directed to the Host Community Cannabis Fund – made official with the recent passage of Senate Bill 56. The state tax commissioner is required to distribute the percentage of the excise tax revenue by the end of each month.