A decision by the Ohio Senate to divert cannabis tax revenues from social equity programs to law enforcement and the state’s general fund has caused widespread concern and backlash. This move goes against the will of the voters who approved Issue 2, which included provisions for using a portion of tax revenue to support initiatives aimed at promoting social equity and job opportunities in the cannabis industry.
By redirecting these funds, the Ohio Senate is essentially ignoring the voices of the people and prioritizing law enforcement and their own interests over promoting a fair and just approach to cannabis legalization. This decision highlights a larger issue of government officials disregarding the will of their constituents and using funds designated for specific purposes for their own agenda.
Not only does this diversion contradict the intentions of voters, but it also has significant implications for social equity and law enforcement in Ohio. By taking away funding from programs aimed at supporting those who have been impacted by past marijuana laws, the Senate is further perpetuating systemic inequalities and hindering progress towards a more fair and just society.
In November, Ohio voters passed Issue 2, which legalized the use and sale of recreational cannabis for adults over the age of 21. This measure also included provisions for allocating tax revenue from cannabis sales to specific funds such as the Cannabis Social Equity and Jobs Program and Drug Addiction Treatment and Rehabilitation Fund. The newly proposed House Bill 86 from the Ohio Senate completely removes these programs.
Under the voter-approved Issue 2, imposed a 10% excise tax on the sale to consumers of adult-use marijuana distributed as such:
- 36% to the Department of Development’s Cannabis Social Equity and Jobs Program
- 36% for the benefit of municipal corporations or townships that have adult-use dispensaries, based on the percentage of tax attributable to each municipal corporation or township
- 25% to support the efforts of the Department of Mental Health and Addiction Services to alleviate substance abuse and related research
- 3% to support the operations of the Division of Cannabis Control and to defray the cost of the Department of Taxation in administering the tax
Ohio Senate’s Changes to Tax Revenues
The proposed House Bill 86, put forth by the Ohio Senate, includes several changes to the adult-use cannabis law previously approved by voters. One of the most significant changes is an increase in the excise tax on cannabis products from 10% to 15%. This would make purchasing cannabis more expensive for consumers and could potentially hinder sales in the industry.
Additionally, this bill eliminates the Cannabis Social Equity and Jobs Program, which was created to provide resources and support for individuals who have been disproportionately impacted by past marijuana laws. Instead, the Senate has proposed redirecting tax revenues towards law enforcement and the state’s general fund, further perpetuating systemic inequalities and hindering progress towards social justice.
House Bill 86 outlines how the tax revenues will be distributed as such:
- 28%, up to $80 million per fiscal year, reduced by any prior year-end balance, to grants administered by DRC to fund the construction and renovation of county jails
- 16%, up to $45 million per fiscal year until five years after the provision’s effective date, then 19%, up to $55 million per fiscal year, reduced by any prior year-end balance in both cases, for DPS to fund peace officer training
- Beginning in FY 2026, 14%, up to $40 million per fiscal year, reduced by any prior year-end balance, for the Attorney General to fund law enforcement continuing education training costs
- 9%, up to $25 million per fiscal year until five years after the provision’s effective date, then 11%, up to $30 million per fiscal year, reduced by any prior year-end balance in both cases, for OMHAS to fund substance abuse treatment, prevention, and education programs
- 9%, up to $25 million per fiscal year, reduced by any prior year-end balance, for OMHAS to fund and administer the 9- 8-8 suicide prevention hotline
- 5%, up to $15 million per fiscal year, reduced by any prior year-end balance, for a five-year program under which the Attorney General reimburses certain costs associated with expungement for marijuana possession offenses decriminalized by the bill
- 5%, up to $15 million per fiscal year, reduced by any prior year-end balance, for the Division of Criminal Justice Services to fund local drug task forces
- 5%, up to $15 million per fiscal year, reduced by any prior year-end balance, to fund safe driving programs administered by DPS
- 4%, up to $13 million per fiscal year, reduced by any prior year-end balance, for DPS to pay the expenses of administering the Ohio Investigative Unit
- 3%, up to $8 million per fiscal year, reduced by any prior year-end balance, to fund the administrative expenses of the Division of Marijuana Control
- 2%, up to $5 million per fiscal year, reduced by any prior year-end balance, for DOH to fund poison control centers
- To the GRF, any revenue that exceeds any designated fund’s annual dollar limit or continues past the county jail funding program’s sunset dates
As of now, this bill has only been passed by the Ohio Senate and it must still go through the House of Representatives before being signed into law by the governor. Ohio House Speaker Jason Stephens, R-Kitts Hill, told reporters Tuesday that the House won’t vote on any marijuana legislation this week before lawmakers take a monthlong holiday break.
While some of the proposed tax revenue allocations may seem logical, such as funding substance abuse treatment and suicide prevention programs, there is a clear lack of consideration for social equity initiatives. By removing the Cannabis Social Equity and Jobs Program, Ohio is essentially ignoring the will of its voters who specifically designated funds for such programs.
Moreover, redirecting tax revenues towards law enforcement and jail construction only perpetuates the systemic inequalities and injustices that have plagued the cannabis industry for decades. It is important to recognize that law enforcement has historically profited from the war on drugs, particularly targeting and disproportionately impacting communities of color.
Instead of allocating funds towards further criminalization and incarceration, Ohio should be using its tax revenues to support those who have been most impacted by past marijuana laws. This includes providing resources and support for individuals who were previously incarcerated for cannabis-related offenses and creating opportunities for them in the legal industry.
By diverting funds towards law enforcement and the state’s general fund, Ohio is essentially perpetuating the same kind of bullshit that this article highlights – disregarding the will of the people and prioritizing profits over social justice.
It is time for the state to listen to its constituents and use tax revenues in a way that truly benefits the community as a whole. So, it becomes important for the people to hold their elected officials accountable and demand transparency in how cannabis tax revenues are allocated and used. Only then can we truly work towards creating a fair and equitable cannabis industry in Ohio.
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