Ohio Cities Report Marijuana Tax Revenue Gains in First Full Quarter

Revenue Distribution Model Takes Shape

Ohio's adult-use tax structure directs 36% of the 10% excise tax to municipalities where dispensaries operate, with the remainder split between substance abuse programs and administrative costs. Springfield, Dayton, and Columbus have each disclosed first-quarter collections ranging from $180,000 to $620,000, depending on the number of licensed dispensaries within city limits.

The state Division of Cannabis Control began remitting municipal shares in March 2026, covering sales from January through March. Cities with multiple dispensaries are seeing the largest inflows. Columbus, with 14 active adult-use dispensaries, reported $620,000 in Q1 marijuana tax revenue. Dayton collected $290,000 from six dispensaries.

Springfield received $180,000 from two dispensaries operating within city limits. The city's finance director confirmed the funds will be allocated to general revenue for fiscal year 2026-2027, which begins July 1.

Budget Planning Adjustments Underway

Municipal finance offices are incorporating marijuana tax revenue into baseline projections for the first time, though most are treating the funds as supplemental rather than recurring for budget-planning purposes. It's a conservative approach. Dayton's city manager told the News-Sun that the city is using a forecast of $1.1 million annually from marijuana taxes, with any overage directed to capital projects.

Columbus is projecting $2.4 million in marijuana tax revenue for fiscal 2027, based on Q1 actuals and assuming flat sales growth. The city has earmarked the funds for road resurfacing and parks maintenance. For full background on Ohio's adult-use rollout and tax framework, see the CannIntel topic hub on Ohio's adult-use program.

Statewide Sales Data Still Pending

The Division of Cannabis Control hasn't yet released aggregate adult-use sales figures for Q1 2026, though municipal disclosures suggest statewide quarterly sales in the range of $80 million to $100 million. That estimate is based on reverse-engineering the 10% excise tax and the 36% municipal share.

Ohio's adult-use market launched with 98 dual-license dispensaries converting from medical-only operations in August 2025. As of May 2026, the state has issued 112 adult-use dispensary licenses. DCC is scheduled to release Q1 sales data by June 15, according to the agency's reporting calendar.

What comes next? Whether Q2 revenue—covering April through June—shows seasonal growth or plateau. Cities will receive Q2 distributions in September, in time for mid-year budget adjustments.