AAWH - Adult-use marijuana could add $400M to Ohio state Coffers

2023-08-16 11:29:08 ET

If a marijuana legalization referendum is added to the November ballot and approved by voters, Ohio could see more than $400M in tax revenue from it.

Researchers at The Ohio State University's Drug Enforcement and Policy Center found that by year five of recreational legalization, tax revenue for adult-use cannabis sales could be as high as ~$403.6M. The lower end of the projected range is ~$276.2M

The think tank based its estimate on Michigan's cannabis tax structure, as it is nearly the same as for Ohio's proposed structure. Adult cannabis sales in Ohio would be subject to the state's 5.75% sales tax as well as a 10% excise tax and up to 2.25% in local taxes.

In addition, the estimate assumes that Ohio's cannabis prices are 10%-20% higher than in Michigan.

The report notes that Ohio's proposed adult-use cannabis tax structure is among the lowest of states that have also legalized. However, should Ohio's legislature boost the marijuana tax structure more than proposed, the authors warn it could lead help the illicit marijuana trade and end up producing less tax revenue.

Multi-state operators Curaleaf ( OTCPK:CURLF ), Columbia Care ( OTCQX:CCHWF ), Green Thumb Industries ( OTCQX:GTBIF ), Verano ( OTCQX:VRNOF ), Trulieve ( OTCQX:TCNNF ), Cresco Labs ( OTCQX:CRLBF ), Ayr Wellness ( OTCQX:AYRWF ), Ascend Wellness ( OTCQX:AAWH ), Jushi ( OTCQX:JUSHF ), and MariMed ( OTCQX:MRMD ) have a presence in Ohio.

More on state marijuana legalization

Advocates in Ohio get extension to get marijuana legalization on ballot

Minnesota becomes latest state to legalize adult-use marijuana

States brought in $3.8B in marijuana tax revenues in 2022

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