Cannabis dispensaries bring high tax revenue to the Valley | Local News

Marijuana dispensaries have generated millions of dollars in tax revenue for municipalities in the Mahoning Valley, according to data from the Ohio Department of Taxation.

“Being a smaller city, the amount of revenue that we’re getting from the dispensary is very significant,” said Catherine Cercone Miller, mayor of Struthers. “It’s something that will help with our general fund, and just overall help the city.”

The state of Ohio collects a 10% excise tax on marijuana sales at licensed dispensaries, in addition to the state sales tax. The excise tax revenue is collected in the state’s Adult Use Cannabis Fund, 36% of which is later disbursed to municipalities that have a dispensary.

Payouts to local communities began in January 2026, including delayed payments dating back to July 2024, after the passage of Senate Bill 56. In total, more than $2.3 million has flowed into the Valley in cannabis revenue.

The money flows into municipalities each month with no limits or requirements on how it is spent. Community officials have taken differing approaches to the funds, with varying levels of intentionality.

Andy Resnick, spokesperson for the city of Youngstown, said all of the city’s dispensary tax revenue goes directly into the general fund without any earmarks.

“We treat it the same way we treat revenue from other excise taxes such as gas, cigarette and hotel,” Resnick said in a text message.

Similarly, the city of Warren has not allocated any of its cannabis dollars towards a specific project, according to city auditor Vincent Flask: “Because if you designate it for something specific, you have less flexibility on what you can use it for moving forward in the future.”

Other communities have decided to earmark funds for specific projects or purposes, though most told 21 News they hadn’t figured out what to do with every single dollar yet.

Cercone Miller said the money will support a $25,000 facade grant for Struthers businesses and a new senior van. East Liverpool’s mayor, Robert Smith, told 21 News in a phone interview that $50,000 has been set aside for the Community Improvement Corporation, working with the city planning department on economic development. In Hubbard, Mayor Ben Kyle said a $75,000 generator project can now proceed, giving backup power to City Hall and the senior center.

“We took a long approach to it, where we weren’t instantly going to start spending the money,” Kyle said. “We wanted to find what’s the best way to utilize the money for the entire community.”

“I like the approach where it’s more a long-term capital improvement versus using that money to stabilize a budget issue, or to put towards small nickel-and-dime type things,” he later added.

Several officials said the addition of the dispensaries to their communities has largely been positive, and little-to-no issues have come up with public intoxication or other crimes as a result of their presence.

East Liverpool’s dispensary in particular has benefitted from its location near the West Virginia and Pennsylvania borders, Smith said. Neither state has legalized recreational marijuana.

“We’ve had offers to put more than one dispensary in here, but we’ve so declined those offers,” Smith said. “We’re not looking to expand this or anything. We’re perfectly happy right where we’re at.”

Officials in Girard and Niles did not respond to 21 News’ requests for an interview.