Ohio officials say they are withholding cannabis derived tax funds from municipalities because the voter-approved legalization law did not include the appropriation of funds to cities, WJW reports. Dan Tierney, press secretary to Gov. Mike DeWine (R) told WJW that the governor plans to use the funds to improve local jails, fund the 988 behavioral crisis hotline, and for law enforcement.
“Issue 2 as passed did not appropriate any funds to cities. We understand the frustration of being told this by those who drafted Issue 2 and coming to find out Issue 2 did not contain appropriations of funds the drafters promised any government entity.” — Tierney to WJW
Under the proposition, 36% of tax funds generated through adult-use cannabis sales – about $10.8 million so far – was believed to be earmarked for municipalities that opted to allow cannabis businesses.
According to the language of Issue 2, 36% of tax revenues derived from the state’s cannabis industry are set aside for “the host communities facilities fund” but it does not implicitly state that the funds should or would be sent to the communities themselves.
Tierney said that “The state funding these priorities will free up local funds for other purposes and local priorities.”
