City, township getting pot sales tax

PERKINS TWP. — The two communities that serve as the locations for Erie County's three adult-use marijuana vendors will get tax revenues from the sales that began in Ohio on Aug. 6. But Perkins Township and Huron may have to wait until the middle of next year to start getting their money. A state spokesman said the distribution of tax revenue to local communities that serve as the host for dispensaries may have to wait until appropriations are approved for the 2025-26 fiscal year budget, which would go into effect on July 1, 2025. Erie County has three dual-use dispensaries that sell medical marijuana, which, starting in early August, also have been permitted to sell cannabis products to anyone 21 years old or older who wants to buy them. Two of them are located in Perkins Township: The Forest, 5020 Milan Road (U.S. 250) and Ascend Cannabis, 6019 Milan Road (U.S. 250). The other is in Huron: Firelands Scientific, 2300 University Drive E. Fremont also should be receiving marijuana tax revenue, as it has a dispensary, Terrasana, within city limits. Gary Boyle, Perkins Township's administrator, said he's received no information on when his government will begin getting marijuana tax revenues. When could the money arrive? Ohio operates on budget cycles of two fiscal years. Currently, it's in the 2024-2025 cycle, which finishes at the end of June 2025. Pete Lupiba, a spokesman for the Ohio Office of Budget and Management, said the dispensing of tax revenues to local communities likely will wait until lawmakers approve a new budget next year for the 2025-26 fiscal years. "Tax revenue from adult-use marijuana will be received into the state treasury in upcoming months; however, Issue 2 was passed last year after the enactment of the current state budget, and the initiated statute did not include appropriation line items for agencies to begin spending the money this state fiscal year," Lupiba said. "The Ohio Constitution prohibits money from being drawn from the state treasury without a specific appropriation. "We expect the appropriations to begin disbursing the marijuana tax revenues will be included in the upcoming fiscal year 2026-27 biennial budget bill, just like new revenues from sports gaming were initially received into the state treasury during fiscal year 2023 but could not begin to be spent until the passage of appropriations in the fiscal year 2024-25 budget bill," he said. Facts and figures Figures released by the Ohio Division of Cannabis Control show that, as of Sept. 14, Ohio dispensaries have sold more than $65 million of non-medical marijuana. Under current law, which state lawmakers might change at some point, Ohio levies a 10% excise tax on all marijuana sales in state dispensaries. From that amount: • The state is required to send out 36% to the local cities and townships that serve as host communities for the dispensaries. • Another 36% goes to the Cannabis Social Equity and Jobs Fund. • Another 25% goes to the Substance Abuse and Addiction Fund to support treatment for substance abuse disorder and research into the problem • The remaining 3% goes to the Division of Cannabis Control and Tax Commissioner Fund to cover the state's regulation costs. The state question voters approved last year, which legalized marijuana sales in Ohio, changed state law but did not amend the constitution. For that reason, it would be easy for state lawmakers to change the law. They haven't done so, at least yet, but bills have been introduced to change the tax rate and to redirect how the money is spent.