Ohio’s cannabis sales have surged past $2.5 billion as of March 15, largely driven by recreational purchases. The Ohio Division of Cannabis Control reported that marijuana sales reached $2.506 billion this month, with over $390 million generated from nonmedical sales in just the past seven months. This achievement occurs amid ongoing discussions among state lawmakers about cannabis reform, particularly concerning the tax revenue generated for local municipalities.
In November 2023, 57% of Ohio voters approved the legalization of recreational marijuana. Following that, medical cannabis sales started in January 2019, while recreational sales commenced in August 2024. Notably, before the start of recreational sales, Ohio had not yet reached $2 billion in total cannabis sales.
State data indicates that two-thirds of all cannabis sales since August have been recreational. Experts estimate that, without the influx of recreational sales, Ohio would not have reached the $2.5 billion mark until October 26, 2025. Based on average sales from December to March 15, projections suggest a 22.4% increase in sales by June 2025 compared to December 2024.
In Ohio, nonmedical sales incur a 10% excise tax. As of March 10, recreational sales alone contributed $37.6 million to the state’s revenue this year. A study by Ohio State University’s Moritz College of Law predicts that Ohio could collect around $62 million from recreational marijuana sales by the end of 2025.
Much of this tax revenue is intended for local communities. According to OSU, about $22 million would go to the Host Community Cannabis Fund, which redistributes tax dollars to municipalities hosting dispensaries. Each of Ohio’s 175 dispensaries is expected to generate approximately $175,000 for its host community.
However, the future of local funding is under scrutiny. Governor Mike DeWine’s proposed budget for 2026-27 aims to eliminate the Host Community fund entirely. Two other pending state bills could also modify Ohio’s cannabis laws, including one that would cap earnings for host communities. Municipalities have expressed concern about potential revenue losses, stating that cannabis taxes are crucial for funding local services like fire and police departments. For instance, Milford officials noted they would lose about $100,000 annually if the host fund disappeared.
Representatives from Euclid commented on the situation, stating that the promise of revenue influenced their decision to allow marijuana facilities in their community. They see any changes to the host community fund as a broken promise, emphasizing that these funds are vital for supporting safety services and community enhancements.
Ohio’s General Assembly continues to evaluate marijuana reform legislation. While both proposed bills have been referred to House committees, neither has a scheduled hearing yet.
