Struthers council hears township leader urge opposition to state reallocation of marijuana tax revenue

Struthers City Council discussed a proposed resolution opposing a state-level redirection of recreational marijuana tax revenue under Senate Bill 56 and Gov. Mike DeWine’s executive budget, with Rob Santos, an Austintown Township trustee and president of the Mahoning County Township Association, urging local officials to make noise with legislators.

Santos told the council that voters were promised a share of the tax revenue after the 2023 legalization of recreational marijuana. He said the ballot language and implementation plans anticipated a local “host community” share—roughly 36 percent of the “local portion” of the excise tax—and that Senate Bill 56 and the governor’s budget would instead increase the state tax rate and keep more of the proceeds at the state level. "The governor's line ... prisons. Kinda help, revitalize some of the prisons up, build some new ones, and jail houses," Santos said when describing projects the governor’s proposal would fund.

Why this matters: Santos and other township leaders told council members that communities that allowed dispensaries counted on those local funds for infrastructure and services; depending on dispensary performance, a host community’s share could range, he said, from roughly $100,000 to $700,000 a year. Santos said Austintown and other townships rely heavily on property tax and do not collect sales tax, so the promised marijuana revenue represented a significant new funding source.

Santos described two competing proposals at the state level: a bill from Sen. Tim (Senate) Huffman that would raise the tax from 10% to 15% and keep revenue at the state, and the governor’s recommendation to raise it to 20% and also retain the funds at the state level. He said the change would divert money that local voters were told would support host communities and local projects. Santos urged council members to support a resolution opposing the reallocation and to participate in letter-writing and phone campaigns to local legislators; he said some municipal leaders were already preparing letters and planning to testify in Columbus.

Council discussion included confirmation that the Mahoning County Township Association and some local mayors were coordinating outreach. Santos said he planned to testify and to distribute any official council letters to legislators; he also encouraged residents to contact representatives he named in the meeting (as stated in the transcript) to register opposition.

No final council vote on the resolution is recorded in the transcript. The item was introduced for discussion and Rob Santos’ testimony was presented to the council; a council member indicated staff could produce a form letter and that officials were preparing to make contacts with state legislators.

The discussion took place during the caucus session's consideration of several pieces of legislation; council members signaled willingness to coordinate with township and municipal associations on next steps.

Next steps: The transcript shows councilmembers and attendees discussing letters, calls and testimony at the statehouse; no formal vote on the resolution appears in the provided transcript.