Cleveland City Council Proposes Allocating Half of Marijuana Tax Revenue to Neighborhood Funds
Cleveland City Council is considering a proposal to allocate half of its marijuana tax revenue directly to neighborhood equity funds, potentially increasing discretionary spending for community projects in each ward
Key Points
- 1Cleveland Councilman Richard Starr proposed directing 50% of marijuana tax revenue to neighborhood equity funds
- 2The city collected $919,338 in marijuana tax revenue since 2024, with $650,249 received in 2025
- 3Each ward could receive an additional $21,675 under the new plan
- 4Mayor Justin Bibb's administration has requested more time to review the proposal
- 5Cleveland's marijuana tax revenue is lower than Columbus and Cincinnati due to fewer dispensaries
A new proposal in Cleveland could see half of the city's marijuana tax revenue directly supporting local neighborhood projects. Ward 5 Councilman Richard Starr introduced legislation this week aiming to channel 50 percent of cannabis-derived funds into council members’ discretionary accounts, known as neighborhood equity funds. These funds have previously been used for enhancements such as park improvements, police equipment, and food assistance for residents, reflecting the council’s commitment to grassroots investment
According to Marijuana Moment, Cleveland collected $919,338 in marijuana tax revenue since Ohio began imposing a 10 percent dispensary sales tax in 2024. For 2025, the city’s share was $650,249. Under Starr’s plan, each of the city’s 15 wards would receive approximately $21,675 in additional discretionary funding. Starr emphasized that the measure would ensure the benefits of legalization return directly to the communities that supported it, stating, “This ordinance ensures that this opportunity is shared, shared fairly, shared transparently and shared with the residents who made it possible.”
Currently, all marijuana tax proceeds are allocated to Cleveland’s General Fund, which covers essential city services. Starr’s proposal mirrors his earlier efforts to expand council control over other local revenues, such as casino taxes—a move that previously met resistance from city officials concerned about potential budget shortfalls. The mayor’s office has requested more time to review the current marijuana tax proposal before issuing an opinion
Cleveland lags behind other major Ohio cities in marijuana tax collections, with Columbus and Cincinnati receiving $5.5 million and nearly $3 million respectively, due in part to their higher number of dispensaries. Last year, Cleveland council members each received $600,000 for neighborhood equity funds, with an additional $300,000 per ward added in this year’s budget. Starr insists that his legislation is about "sharing governance, not taking away from the mayor’s administration," and has called on his colleagues to back the initiative
From the OG Lab newsroom perspective, Cleveland's debate over marijuana tax allocation highlights the growing conversation nationwide about how cannabis revenues should be reinvested in local communities. As more cities and states legalize cannabis, stakeholders will be watching closely to see whether direct neighborhood funding models gain traction and deliver tangible benefits to residents
