CIRCLEVILLE — As Ohio releases millions of dollars in recreational marijuana tax revenue to local communities, questions are emerging about how much money Circleville may be leaving on the table.
Over the past several weeks — with distributions continuing as recently as Feb. 17 — the Ohio Department of Taxation has distributed more than $35 million in adult-use cannabis tax revenue to roughly 100 Ohio communities that host licensed dispensaries.
Cities with dispensaries have begun confirming major payouts. Columbus reported receiving approximately $4.2 million in its first major deposit, covering sales from November 2024 through December 2025. Cincinnati received about $2.5 million, while Dayton reported roughly $1.2 million.
Meanwhile, Chillicothe — a mid-sized regional city with a licensed dispensary — received approximately $330,000 during the first 14 months of adult-use sales, spanning August 2024 through Nov. 30, 2025.
Circleville, however, currently has no licensed dispensaries.
How the Tax Works
Ohio voters approved recreational marijuana legalization in November 2023, and the law officially took effect Aug. 6, 2024. Since adult-use sales began, total sales statewide have surpassed $1.1 billion as of early January 2026.
Adult-use marijuana in Ohio is subject to a 10% excise tax, in addition to the state’s 5.75% sales tax and applicable local sales taxes.
Under Senate Bill 56, 36% of the excise tax revenue is directed to the Host Community Cannabis Fund, which distributes money directly to municipalities or townships that host licensed dispensaries. The remaining 64% flows into the state’s general revenue fund.
Importantly, funds are distributed to the specific city or township hosting the dispensary — not to the county government.
Circleville’s Moratorium
The Circleville City Council approved a moratorium on cannabis-related businesses on Aug. 6, 2024 — the same day Ohio’s recreational marijuana law took effect. Council members cited uncertainty over state licensing rules and concerns about citizen safety.
Recently, the council voted to extend the moratorium until May 6, 2026.
Circleville isn’t the only one; hundreds of Ohio municipalities or townships have enacted moratoriums on adult-use cannabis businesses, impacting less than 15% of the state’s population.
While Circleville has shops that sell hemp-derived products and accessories, those businesses are not state-licensed marijuana dispensaries and do not qualify the city for Host Community Cannabis Fund distributions. Residents seeking legal access to recreational marijuana must travel to neighboring communities like Chillicothe.
The Financial Question
With neighboring cities collecting hundreds of thousands — and in some cases millions — in new tax revenue, the debate in Circleville now includes a financial dimension.
Supporters of the moratorium argue it allows the city time to evaluate public safety and zoning concerns. Critics say the pause may be costing Circleville significant revenue that could support infrastructure, public safety or other municipal needs.
For now, the moratorium remains in place, and Circleville will not receive cannabis host-community tax distributions unless it allows licensed dispensaries to operate within city limits.
