Ohio House rejects plan to double marijuana tax, Senate to consider
Apr 07, 2025
COLUMBUS, Ohio (WCMH) -- The Ohio House rejected Gov. Mike DeWine's plan to double marijuana sales taxes in its proposed budget, adopted April 1.
DeWine had proposed doubling Ohio's excise tax on recreational marijuana from 10% to 20%. Despite another bill weighing changes to marijuana legislatio
n in the House, Ohio Representatives removed DeWine's proposed tax changes. Nearly 60% of Ohioans voted in favor of legalizing recreational marijuana, and lawmakers have faced criticism for moving to alter voter-approved marijuana laws.
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DeWine had suggested the added 10% tax would support a new fund distributing revenue to six agencies: Health, Commerce, Public Safety, Behavioral Health, Tax and the Attorney General's office. It would have generated a projected $87 million in fiscal year 2026 and $176 million in 2027.
The Department of Taxation had been in favor of the increase, saying the funds could have supported the 988 suicide hotline, jail construction and court costs for expunging marijuana possession offenses that are still on Ohioans' records.
Political advocacy groups on both sides of the aisle celebrated the change, as liberal policy groups have condemned marijuana policy changes throughout. Conservative group Americans For Prosperity released a statement from its Ohio Executive Director Donovan O'Neil, who said he was "thrilled" to see the tax increase eliminated.
The update does not mean marijuana laws will not be changed. The budget is a long way from its summer deadline and will face changes in the Senate, and both House Bill 160 and Senate Bill 56 would adjust recreational marijuana laws. SB 56 passed in the Senate earlier this year, so both bills await action in the House. Both would decrease the legal level of THC permitted, limit Ohio to 350 dispensaries and adjust where marijuana could be smoked.
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At the first Senate testimony, Attorney General Dave Yost encouraged the Senate to implement the excise tax increase to fund law enforcement training. With DeWine's budget proposal, law enforcement would have received around $75 million across two years from the marijuana tax increase.
"I would strongly encourage this committee to reinstate the permanent funding stream via the marijuana excise tax to continue to show our support for our local law enforcement partners," Yost said.
House Bill 160 has its second hearing in the House Judiciary Committee on April 9. Senate Bill 56 is also in the Judiciary Committee but does not have any hearings scheduled. The budget will continue deliberations in the Senate throughout the coming weeks. ...read more read less