SALEM, Ohio — Ohio recreational marijuana sales hit $702 million on Aug. 2 after its first year, according to data from the Ohio Department of Commerce Division of Cannabis Control.
Recreational marijuana became legal through the passing of voter-approved Issue 2 on Nov. 7, 2023, with 57% of Ohio residents voting yes; sales began in August 2024. Since then, Ohio’s recreational and medical marijuana industry has generated almost $3 billion in revenue from product sales at 159 fully licensed marijuana dispensaries, reports the DCC.
Medical marijuana dispensaries made over $2 billion in revenue from product sales since it was legalized in 2019, according to the data. Recreational marijuana helped add roughly $702 million to the total in the past year.
The state of Ohio earns tax revenue from marijuana sales through a 10% excise tax on recreational purchases and a 5.75% state sales tax applied to both recreational and medical products, in addition to varying local municipal and county taxes.
These taxes support four different initiatives in the state, as designated by Issue 2. This includes 36% going toward the Cannabis Social Equity and Jobs Fund, used for social equity and job initiatives; 36% to the Host Community Cannabis Fund, which benefits townships that host adult-use dispensaries; 25% to the substance abuse and addiction fund to support substance abuse and addiction services, and the remaining 3% going toward the Division of Cannabis Control and Tax Commissioner fund to finance the operations of the state’s marijuana regulatory body.
However, this distribution of marijuana taxes has been up for debate by Ohio lawmakers in recent months. In March, House Bill 160 and Ohio Gov. Mike DeWine’s 2026-27 Executive Budget proposed that the bulk of tax revenue should go toward a general fund to finance law enforcement training and build jails, among other objectives.
These changes have faced particular scrutiny from Issue 2 supporters, with many saying it undermines the will of what voters asked for.
Others like Cat Packer, an Ohio resident and the director of drug markets and legal regulation at the Drug Policy Alliance, previously told Farm and Dairy that if the bill passes, Ohio marijuana consumers would “be funding, potentially, your own incarceration and criminalization,” as HB 160 and Senate Bill 56 seek to implement a host of new criminal penalties for marijuana consumers, as well.
DeWine’s budget also proposed increasing marijuana taxes, but it was later struck down due to concerns that higher taxes could push more Ohio consumers away from the legal, regulated market.
“Our tax policy should incentivize Ohioans to buy affordable, regulated, state-grown marijuana rather than pushing them to the (illegal) market, or even worse yet, to Michigan,” said Ohio Rep. Brian Stewart, a Republican representing Ohio’s 12th district, who introduced HB 160.
Despite Ohio’s growth in marijuana sales, its industry lags behind other states. Michigan’s cannabis industry made $3.29 billion in revenue from recreational and medical marijuana sales in 2024; Ohio brought in almost $3 billion from marijuana sales after six years, mostly from medical marijuana. A number of factors have held Ohio back, including its higher retail prices and the recency of its recreational market.
Limitations on the number of licenses available for marijuana growers and dispensaries have led to higher prices in Ohio, according to Packer. Currently, recreational marijuana licenses are only available to medical marijuana dispensaries that were open before the passing of Issue 2, reports the DCC.
Recreational marijuana has also been legal in Michigan since December 2019, while Ohio’s recreational market is still new and under debate by lawmakers.
Currently, Ohio House Bill 160 has yet to pass in the House, and Ohio Senate Bill 56 has passed the Senate but has yet to move from the House Judiciary Committee.
(Liz Partsch can be reached at epartsch@farmanddairy.com or 330-337-3419.)
