Ohio voters have voted to legalize adult-use cannabis, becoming the 24th state in the U.S. to do so. The vote for the Issue 2 measure resulted in a majority of 56.97% voting yes and 43.03% voting no, according to the unofficial election results from the Ohio Secretary of State's office.
Issue 2
The measure will allow adults aged 21 and older to possess up to 2.5 ounces of cannabis (or 15 grams of extract) and grow up to six cannabis plants at home or a maximum of 12 plants per household. It will also establish a 10% excise tax, plus regular state and local sales tax, totaling between 15.25% - 17.5% tax levy.
A newly established Division of Cannabis Control will oversee the new adult-use market. The Division will issue up to 40 Level III adult-use cultivator licenses and up to 50 additional adult-use dispensary licenses. The Issue states that the Division will have a preference to applicants who have been certified as cannabis social equity and jobs program participants.
A study done by Ohio State University predicts that by year five of operation, Ohio could see between $276 million to $403 million in annual tax revenues.
Issue 2 was expected to pass, as multiple polls showed majority support in advance to the election. A previous measure to legalize adult-use in 2015 did not pass, with more than 60% of the voters against it.
"A strong foundation"
"We are pleased to see Ohio voters and legislators embracing adult-use cannabis," says Eric Offenberger, CEO of Vext, a cannabis operator with vertical operations in Arizona and Ohio. "This marks a key milestone not just for Vext, but the industry as a whole. As the seventh most populous state in the country, with nearly 12 million total residents and a successful medical cannabis program, Ohio has a strong foundation to establish itself into a robust adult-use market. The results of this vote will ensure that Ohioans will have access to quality, regulated cannabis products and the state will also benefit from the jobs, tax revenue and related opportunities that an adult-use industry promotes."
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