Marijuana tax distributions yet to be proposed for property tax relief 

Ohio communities with recreational marijuana dispensaries began receiving their first shares of a cannabis tax windfall last month amid taxpayer calls for property tax relief.

The funds stem from a 10% excise tax on adult-use cannabis sales, approved by voters in 2023 via Issue 2 and refined by Senate Bill 56, which directs 36% of collections to the Host Community Cannabis Fund.

Senate Bill 56 was written broadly to allow local governments to use the money for any lawful purpose, including property tax relief. As funds trickle down to the community level, planned uses currently focus on expanding public infrastructure, government services, and operations.

The first distribution covers taxes collected from dispensary sales between mid-2024 and late 2025, with monthly payments now ongoing. While payouts initially contained errors affecting about 10% of funds, or roughly $3.39 million, officials note that, even after corrections, more than 100 municipalities and townships will soon receive their share of an approximate $33 million pool.

In Piqua, a city in Miami County, officials plan to allocate more than $438,000 toward improvements and maintenance at its 16 parks. City Manager Paul Oberdorfer described the revenue as fulfilling expectations that hosting dispensaries would return funds for local priorities “like recreation.”

Alliance, in Stark County, intends to direct its share, part of more than $1.1 million received by Canton and nearby areas, toward demolishing blighted commercial and residential buildings, aiding infrastructure and neighborhood revitalization.

Columbus, the state’s largest recipient with about $4.2 million in the initial distribution, is one of the only cities to establish a special reserve fund. Yet it’s not voter approval, but the council’s approval, that’s required for spending. City officials have floated plans to support education, workforce development and government services.

The small village of Seven Mile, with a population of fewer than 750, is set to receive roughly $400,000, quadrupling its typical budget of $75,000.

Larger communities, such as Dayton, Monroe, and Canton, are integrating funds into general budgets, prioritizing public safety, and allocating funds to infrastructure upgrades or general administrative operations.

Property taxes have been a hot-button issue for residents and lawmakers alike. Despite five bills passed last year that give counties more flexibility in tax assessments and cap education levies, residents say it’s too little too late.

“They’re gonna price me out of my home,” the senior Concord Township home owner told Ohio.News. Massie, who helped launch the Committee to Abolish Ohio Property Taxes, shared what he calls a disturbing trend.

“The state keeps the majority of the tax revenue generated and shortchanges the local communities,” Massie shared, explaining why local governments are forced to lean on homeowners. “State revenue distribution to the local government has been cut drastically over the years,” Massie said, sharing a chart that shows a 75.60% decrease in wealth distribution back to the local level since 1990.

“It’s disturbing to me that local governments NEVER think of returning money to the over-taxed citizens. In my opinion, the public sector has outgrown the private sector’s ability to pay for services,” Massie added.

As Ohio residents struggle with rising energy costs and a higher-than-average cost of living, fiscal advocates emphasize that local governments can eliminate property taxes while maintaining current budgets and even set aside funds for general reserves.

Despite these legally permissible uses of the Host Community Cannabis Fund, communities have yet to announce plans or seek resident input on property tax cuts, resident rebates or similar taxpayer relief. Instead, officials have signaled budget increases in anticipation of growing monthly distributions as cannabis sales continue.