Area communities finally getting millions in cannabis tax revenue

The payments come from Ohio’s so-called host community fund, which was set up by the voter-approved measure that legalized recreational marijuana in 2023. The fund takes 36% of the state’s recreational cannabis sales tax revenue and redistributes it to communities in proportion to how much cannabis tax revenue was raised within their jurisdiction.

But while that fund had collected revenues since legal sales began, the state didn’t have the authority to disburse those funds until the recent passage of Senate Bill 56; nor had the state calculated the amounts each host community would get. That uncertainty and delay meant that many communities haven’t exactly planned out what they’ll do with their newfound revenue.

Toni Bankston, a spokesperson for the city of Dayton, said internal talks over how to use the funds are underway, but will ultimately be left up to city council.

Dayton led the area with a host community fund payment of about $1.1 million, which Bankston confirmed was received on Jan. 7. There are six dispensaries within Dayton city limits.

Second in the area is Monroe, with its four dispensaries. The city potted $886,000 from the host community fund.

“Since Senate Bill 56 was not passed when we were doing out 2026 budgeting process, these revenues weren’t included when our 2026 expenditures were established,” said Monroe Finance Director Jake Burton in an interview with this outlet. “Now that the bill’s been passed and the money’s been received, we’ll start engaging in further discussion with our city council to determine the best use of the funds as we move forward.”

The host community payments have the potential to serve as a helpful-but-small fiscal boost, as is the case in Dayton; or a “fairly significant amount,” as is the case in Monroe; or a huge influx of cash, as is the case in Seven Mile, a village just north of Hamilton that is home to around 700 people.

Seven Mile’s sole recreational dispensary, Bloom, gave the village a claim of about $401,000 in the host community fund. For context, the village’s total operational expenses came out to $320,000 in 2021, $376,000 in 2022, $337,000 in 2023, and $654,000 in 2024, according to the Ohio Checkbook.

Credit: Nick Graham

Credit: Nick Graham

This outlet has not yet heard back from Seven Mile officials regarding the village’s host community payment.

Springfield, with its three dispensaries, is still determining how the city will use the $337,000 it was sent in January.

“The intent is to provide flexible revenue to host communities, and the city plans to use the marijuana tax proceeds for proper public purposes that support core services like public safety, infrastructure and general operations,” Springfield Communications Director Karen Grave told this outlet.

Here’s the full list of local host communities and the amount they’re due, according to a document obtained by the Dayton Daily News: