Ohio House passes budget limiting marijuana tax revenue for host communities to 20%

In the heart of Oxford, Ohio, city officials gathered on April 15, 2025, to discuss pressing matters that could significantly impact the community's financial landscape. Among the key topics was the distribution of excise tax revenue from adult-use marijuana dispensaries, a subject that has sparked considerable debate and concern among local leaders.

As the meeting unfolded, one council member passionately outlined the current situation regarding the city's two dispensaries. Initially, Oxford was set to receive 36% of the 10% excise tax collected by the state. However, recent legislative developments have cast a shadow over this expectation. Two bills currently in the Ohio legislature threaten to reduce the city's share. Senate Bill 56, although amended, did not alter the distribution, while House Bill 160 proposed slashing the allocation to host communities to just 20% for a limited period of five years. The governor's budget bill further complicated matters by eliminating any distribution to host communities altogether.

The council member emphasized the importance of tracking these legislative changes closely, noting that the House has adopted a budget bill that maintains the 20% allocation. This reduction, if finalized, would significantly impact Oxford's financial resources, as the city would receive only a fraction of what was originally anticipated.

With 139 licensed dispensaries operating across Ohio, the council member pointed out that only a small number of municipalities, including Oxford, host multiple dispensaries. This unique position underscores the argument that host communities should rightfully share in the excise tax revenue generated by these businesses, as established by the citizen-initiated statute adopted by voters.

As the meeting concluded, the council member pledged to continue advocating for the city’s interests, reaching out to state representatives to ensure that the original statute language, which supports a 36% allocation with no time limit, remains intact. The outcome of these legislative discussions will not only affect the city's budget but also the broader conversation about community benefits from the burgeoning cannabis industry in Ohio.