If Ohioans approve a proposal to legalize recreational marijuana in November, a new study by Ohio State University shows the state could rake in an e xtra $218 million in tax revenue the first year alone. And b y the fifth year, the 1 0 % e xci se tax on mari juana coul d mean up to $ 404 mill ion, accordi ng to researchers at the OSU D rug Enf orc ement and Poli cy C enter .
T hat come s as no surp rise to Tom Haren , spokes person for the Coalition to Regulate Marijuana Like Alcohol, the group pushing for legalization of marijuana for Ohioans 21 and older.
“Like most people in Ohio, I trust The Ohio State University, and I think their findings validate what we have been saying all along," Haren said.
Ohioans who purchase marijuana would have to pay a 10% e xci se ta x plus the state sales tax at 5.75% plus the local tax which could range from 0.25% to 2.25%. The stud y p oi nts o ut Ohio's proposed excise tax rate of 10% is less than some other states that have legalized marijuana
Haren said a lot of thought went into coming up with a taxation plan that would make Ohio competitive with nearby Michigan but , more importantly, to accomplish another goal.
"We're going to put the black market out of business ," H aren said. "Ohio consumers will have a true alternative to the black market where products are safe and tested, they are regulated and they are also on par as it relates to price with the black market . "
Ohio's medical marijuana program would continue to be in place and those participating in it would not be taxed for their products.
Changes could lie ahead
Because Issue 2 is a propos ed law and not a constitutional amendment, Ohio lawmakers could change it if voters pass it. In fact, Sen a te President Matt Huffman (R-Lima) has already indicated he'd do that, especially if it isn't passed with a supermajority.
The Ohio Chamber of Commerce and hospital leaders throughout the state have also argued against the proposal.
Gov. Mike DeWine (R-Ohio) has also criticized the proposal, saying legalizing cannabis would be a big mistake.
DeWine argued more kids who are underage will be getting their hands on marijuana, which, he says, is not your marijuana of the 1960s, 70s or 80s. This product has been developed and its potency is significantly higher than it was years ago, he said.
“This is not your grandfather’s marijuana or your grandmother’s marijuana. This is different,” DeWine said.
Haren agreed it's not your grandparents' marijuana . It's safer , he said, and passage of the plan would mean marijuana that is sold is tested and controlled - something that doesn't happen with illegal marijuana.
Haren said he's been talking to lawmakers and he doesn't think they will make substantive changes to the marijuana plan if Issue 2 passes on Nov . 7.
Copyright 2023 The Statehouse News Bureau.