Mahoning townships oppose marijuana revenue changes
AUSTINTOWN — Some state officials have proposed changes to recreational marijuana laws and now a township trustee wants to rally Mahoning County to respond.
Austintown Township Trustee Robert Santos, president of the Mahoning County Townships Association, wants county residents and officials to contact state lawmakers and voice opposition to Senate Bill 56, which he says undermines the voters and will hurt local communities.
“This affects all communities that have a recreational marijuana dispensary or are getting a dispensary in their area,” Santos said. “This was also reviewed by the Ohio Township Association and by all those involved in the legislative process.”
The bill, introduced in late January by state Sen. Steve Huffman of Tipp City — about 15 miles north of Dayton — would increase the tax on recreational marijuana from 10% to 15% and remove the 35% local share, diverting all funds instead to the state’s general revenue fund.
Santos said a similar law proposed by Gov. Mike DeWine would increase the tax to 20% and also remove the local share, diverting it to the state’s coffers.
“What’s frustrating is that when the residents went to the ballot box, it was there in the ballot language,” Santos said. “They voted with the understanding that this money would be coming to local communities. To have it removed afterward is disenfranchising the voter and it is un-American.”
He said the township faced similar frustration after the Hollywood Gaming at Mahoning Valley Race Course opened.
“The state did the same thing with the racino,” he said. “They promised us funding and then took it away after the doors were open.”
Santos said the township values the relationship the racino has with the local community. It brings many other benefits, but he does not care for the way the state treated Austintown.
Trustees first banned dispensaries in the township last year but had a quick change of heart after considering the potential financial benefits.
In June, when they approved zoning to allow for one dispensary in the township, they did so based on estimates of potential revenue for townships, derived from sales trends from dispensaries operating across the country.
Assuming a dispensary does $20 million in annual sales, the township could see $720,000 in tax benefits. At the time, Santos said trustees hoped Austintown might see at least $200,000 per year should a dispensary open.
In July, Terrell Washington, owner of Leaf Relief dispensary on Market Street in Youngstown, obtained a permit to open in Austintown.
Trustees have approved a zoning ordinance to allow for a marijuana dispensary within the commercial district along state Route 46 near Interstate 80. The corridor extends from County Line Road south to just below Ashley Circle and spans approximately 4,000 feet in either direction from the I-80 overpass.
Areas zoned for business and industrial, where a marijuana dispensary will be permitted to operate, include Patriot Boulevard, Cerni Place, Clarkins Drive, 76 Drive, Hollywood Drive and the portion of Silica Road between Route 46 and Ohltown Road.
Santos said Washington has a permit for the Club 76 building, but is looking to move it to a new location within the zoned area.
“That process has nothing to do with us (trustees),” Santos said. “He’s going through that process with the state. Mr. Washington will notify us when that process is complete and tell us where he’s opening.”
Even if Washington were unable to open the dispensary, Santos said, the township would be obligated to allow one dispensary to open in Austintown with none of the tax revenue coming to the community.
A document from the Ohio Township Association states that either Senate Bill 56 or the budget item in the Governor’s Blue Book would reallocate the funds that Issue 2 set aside for dispensary host committees toward county jail construction and renovation.
Santos posted about the changes on his official township trustee Facebook page Thursday, and on Friday he touted a livestream discussion he would host that evening.
Santos regularly hosts livestream discussions to address ongoing issues in the township.
“I just know this would be a good opportunity to discuss what’s going on, to also cover other issues in Austintown, but primarily to hit on this,” he said.
Santos encouraged all residents and officials in the county to reach out to state representatives Lauren McNally and Tex Fischer, and state Sen. Al Cutrona. Santos said none of them have signed on to the bill, but they represent the county’s voice in the Ohio Legislature.
Santos said the Mahoning County Township Association, which represents all 14 townships in the county, is formally opposed to the bill and DeWine’s Blue Book budget item.