Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Taxes Cannabis Policy topic
No spam. Unsubscribe anytime.
Riverside asks staff to press state lawmakers after SB 56 could strip local cannabis excise revenue
Summary
City staff warned that Senate Bill 56 and related budget proposals could redirect cannabis excise taxes away from host communities. Council asked staff and the law director to draft a resolution and meet with state representatives to explain local impacts.
At the Feb. 18 Riverside City Council meeting, the city manager briefed council on possible changes to Ohio cannabis taxation under Senate Bill 56 and related budget discussions that could alter how excise tax revenue is shared with host communities.
Under current law the manager said, a portion of cannabis excise tax proceeds (about 36 percent under the program the manager described) is directed back to the municipality hosting a retail dispensary; Riverside has two dispensaries in its limits. The manager warned that SB 56, as drafted in the statehouse, would increase the excise tax but send the revenues to the state general fund instead of the community fund, potentially leaving host cities with little or no local excise revenue. He also said operating-budget negotiations could produce a compromise that raises the tax while returning a smaller local share.
Council members reacted strongly to the prospect of losing local revenue. “It looks like the state as a whole voted that said if we're going to do this, this is the way we're going to do it,” one council member said, arguing that communities expected local compensation for hosting dispensaries. Councilmember Joseph asked staff to pursue conversations with the city’s state legislative delegation so they understand local budget impacts.
By consensus council asked the law director and city manager to draft a resolution articulating the city’s position and to meet with state lawmakers. The law director and manager said they would prepare draft language and use it both as talking points for meetings and as a ready resolution should council choose to adopt it formally.
Ending: Staff said they will return to council with the drafted resolution and a report on meetings with the city’s state representatives. Council members noted the potential for statewide litigation and the importance of protecting local revenue streams if the legislature changes the current distribution.
