Ohio Finally Releases Cannabis Tax Revenue Meant for Local Governments

Ohio has begun distributing cannabis-derived tax revenue to local governments that host dispensaries, as required by state law, according to WCMH.

The announcement comes following the revelation last March that the state was withholding nearly $11 million in cannabis tax revenue earmarked for local governments that had opted to allow cannabis businesses.

Officials started releasing some $33 million in cannabis-derived funds on January 7, the report said.

“When Ohio voters approved adult use legalization, they envisioned real, measurable benefits for local communities, and these first distributions show that the model works.” — Nicole Stark, CEO of Bloom Cannabis, via WCMH

Adult-use sales in Ohio are subject to a 10% cannabis excise tax, the state’s base 5.75% sales tax, and up to 2.25% in additional local taxes. The released funds were collected from adult-use cannabis sales from July 2024 to November 2025.

Columbus City Council President Shannon Hardin said the city has received $4.2 million in cannabis tax revenues from the state, which will go toward education and workforce development.

“We are happy to finally get these funds, which we have been waiting for,” Hardin said in the report.