Most people assumed Ohio’s marijuana revenue would work the same way legalization did.
Fast.
Sales would begin.
Money would follow.
That isn’t what happened.
After voters approved Issue 2 in November 2023, recreational marijuana sales launched in August 2024. Dispensaries opened. Consumers showed up. Taxes were collected every day.
Cities and villages waited.
Not because the money didn’t exist.
Because the system to move it didn’t.
Why Ohio’s Marijuana Tax Revenue Was Delayed
Issue 2 created a 10 percent excise tax on recreational marijuana. It directed more than a third of that revenue to a Host Community Cannabis Fund meant to benefit cities and towns that host dispensaries.
What it did not include was the mechanism.
Issue 2 created the tax.
It created the fund.
It did not create a statutory formula to distribute the money.
State agencies collected tens of millions of dollars in marijuana tax revenue but lacked legal authority to release it. The Ohio General Assembly spent more than a year debating whether — and how — it could clarify a voter-approved law without reopening it politically.
During that time, the money sat untouched.
The delay wasn’t accidental.
It was structural.
Ohio Cities Begin Receiving Marijuana Tax Revenue in 2026
Only after lawmakers approved clarifying legislation late in 2025 did the system unlock.
In January 2026, Ohio began distributing host community marijuana tax revenue for the first time, sending roughly $33 million to cities and villages statewide.
For some communities, the impact was immediate.
Seven Mile Village, a town of fewer than 1,000 residents, received about $400,000 — a meaningful infusion for a small municipal budget. Other communities are now considering how to apply the funds toward public safety, infrastructure, parks, and general operations.
What Ohio Cities Face Next
Ohio cities are receiving their marijuana tax revenue now.
The delay is already part of the record.
The revenue question has been answered.
What remains is quieter — and structural: whether the system was built to move when voters said yes, or whether it had to be finished after the fact.
