SOUTH EUCLID, Ohio — A memo attached to Tuesday night’s South Euclid City Council meeting says the state has not specified when or how adult-use cannabis tax revenue will be distributed.

Recreational marijuana hit the shelves of licensed dispensaries in August.

Since then, sales of adult-use cannabis have skyrocketed. raising over $155 million as of November 12.

Amid the state and local taxes imposed on marijuana, an additional 10% tax is levied on purchases just because it is recreational.

There are more than 100 marijuana dispensaries licensed to sell adult-use marijuana in Ohio. Of those, South Euclid is home to just one: the certified dispensary on Cedar Road.

“Our understanding is that we will receive about 10 percent of the sales from this dispensary, but we have not yet heard from the state regarding their plans to distribute the funds,” said Keith Benjamin, director of community services for the town of South Euclid. .

South Euclid’s finance director estimates the city made $100,000 more from adult-use cannabis this year.

“It will go to public services and public safety,” Benjamin said. “The cost of providing services, including police, fire, emergency medical services and other services, continues to increase each year. It’s always good when we can raise additional funds and generate additional income.

Benjamin called that $100,000 estimate a best estimate as the city works to finalize its 2025 revenue budget in the coming weeks.

“It’s something new, not just for us in the city. This is also new to the state of Ohio. This is the first time we are all experiencing this. I think we all expect bumps in the road as we move forward and implement something new. I think everything will be fine for 2025 in the short term. But certainly, as we move forward in the years to come, it would be good to know exactly how the process is going to work,” Benjamin explained.

Benjamin said the City Council hopes to know soon how many recreational marijuana sales the certified dispensary has made this year so it can prepare for finalizing the budget.

I have contacted the Ohio Department of Taxation and the Ohio Department of Budget and Management for more information. As soon as updates are provided, they will be added here.