Ohio Senate Redirects Cannabis Tax Revenue

LOS ANGELES- In a move that has sparked widespread debate, the Ohio Senate has recently passed a bill that significantly alters the allocation of tax revenue generated from adult-use cannabis. This legislative action stands in stark contrast to the preferences expressed by Ohio voters, who had originally earmarked these funds for social equity and job programs. The bill, which was passed last week on the same day the voter-approved law took effect, signals a shift in fiscal priorities, raising concerns among advocates and citizens alike.

The new bill imposes a hike in the excise tax on cannabis products, increasing it from 10% to 15%. Crucially, it also redefines how this tax revenue will be distributed. According to WTAP’s report, over half of the tax proceeds from adult-use cannabis will now be directed towards law enforcement and jail construction. The remainder is allocated for drug treatment and related initiatives. This redirection of funds marks a significant deviation from the voter-approved measure, which had established five distinct funds in the state treasury, including the cannabis social equity and jobs fund.

Political news outlet Politico highlights that the Senate’s decision effectively dissolves the social equity and jobs program, rerouting these monies instead to law enforcement and the state’s general fund. This move has been met with criticism from various quarters, including Tom Haren, a spokesperson for the legalization campaign, who told Politico that the bill “does not respect the will of the voters.”

Apart from the financial reallocations, the measure introduces several regulatory changes. It permits current medical cannabis companies to extend their sales to non-patient adults aged 21 and over. Additionally, it imposes a limit on home cultivation to six plants per household and establishes caps on the THC content in cannabis products.

The proposal, which still awaits approval from the Ohio House, has received backing from Republican Governor Mike DeWine. Its passage could represent a significant shift in the state’s approach to cannabis, particularly in terms of revenue allocation and law enforcement. As the bill moves to the House for consideration, it remains a subject of intense discussion and debate, reflecting the ongoing complexities of cannabis legalization and its fiscal implications in Ohio.