From Sales to Social Justice: How Cannabis Tax Revenue is Powering Equity in Cleveland Heights

CLEVELAND — Just over a week since recreational cannabis sales kicked off in Ohio, the benefits are already starting to take root in communities like Cleveland Heights. Beyond the immediate economic boost, cannabis tax revenue is set to play a pivotal role in funding social equity programs, mental health services, and other vital community initiatives.

At Amplify Dispensaries in Cleveland Heights, the first week of sales has seen a significant surge in customer visits, with foot traffic doubling since recreational cannabis was legalized. While this increase is good news for the local economy, the real impact of these sales lies in the social and community programs they help fund.

Cleveland Heights Mayor Kahlil Seren is optimistic about the transformative potential of this new revenue stream. A state and local sales tax applies to all recreational cannabis purchases, along with a 10% excise tax. Notably, 36% of the excise tax revenue goes directly to host communities like Cleveland Heights. Mayor Seren emphasized that there are no restrictions on how municipalities can use these funds, providing flexibility to address the most pressing local needs.

“When we get this tax revenue in from this dispensary or any others that open up, we will steer those revenues toward the areas of greatest need,” Seren explained. “This funding is a game-changer for our community, allowing us to invest in critical areas that have been underfunded for years.”

One of the key areas benefiting from cannabis tax revenue is the Social Equity and Jobs Program. This initiative is designed to provide opportunities for those disproportionately affected by past cannabis prohibitions, including job training, business development, and community outreach programs. By reinvesting cannabis tax dollars into these programs, Cleveland Heights is taking significant steps toward rectifying the inequalities that have long plagued the cannabis industry and its surrounding legal framework.

In addition to social equity, the excise tax also supports mental health and addiction services—a crucial component in a state where access to mental health care has often been limited. The funds ensure that those in need receive the support and treatment necessary to lead healthier, more stable lives.

The impact of cannabis sales extends beyond just tax revenue. AJ Caraballo, the retail director at Amplify Dispensaries, highlighted the broader community benefits that come with increased foot traffic. “We’re driving foot traffic, which is huge not only for our location but also for all the businesses around us—restaurants, shops, everyone,” Caraballo said. “Cannabis sales bring people into the community, which helps the local economy thrive.”

Amplify Dispensaries is also committed to social justice initiatives. A portion of their first week’s sales will go to the Last Prisoner Project, an organization dedicated to helping those with cannabis-related convictions have their records expunged. “We are very thankful and fortunate that this non-medical market is here,” Caraballo added. “However, we would be remiss if we didn’t acknowledge that there are still people in prison for doing the same thing we are now able to do legally.”

In terms of public safety, Mayor Seren reported that the city has experienced no cannabis-related safety issues since the opening of recreational sales. “The most important feedback I’ve received is from my chief of police, who has confirmed that we’ve seen no issues as a result of the new cannabis market in Cleveland Heights,” Seren said.

As cannabis sales continue to grow, the potential for positive change in communities like Cleveland Heights becomes increasingly apparent. With strategic investment in social equity, mental health, and community development, cannabis tax revenue is not just benefiting the economy—it’s laying the foundation for a more equitable and thriving community.

Do you think cannabis tax revenue is the key to addressing social equity in your community?

• Yes, it provides essential funding for critical programs.
• No, more comprehensive measures are needed.
• Unsure, but it's a positive step forward.