Marijuana on Ohio’s November Ballot

(Fall 2015) Ohioans will weigh in on marijuana legalization this fall due to the efforts of ResponsibleOhio. The organization secured over 320,000 qualified signatures to bring the proposed legislation to the state’s voters on the November 3^rd general election ballot.

Those in favor of legalization argue that the state’s new marijuana industry would generate a billion dollars over the coming four years — and over $2 billion annually by 2020.

What would Ohio gain fiscally from legalization? Marijuana growing and product manufacturing businesses will be charged a 15% tax on their gross income in addition to standard business taxes. Retail stores will pay a 5% tax on their gross income. By 2020, estimates project that Ohio’s yearly tax revenues could be above $500 million.

If voters approve the measure, Ohio will join five other states who have said yes to legalization for personal use. It will also be the most populous state to do so, and the first to jump from the complete prohibition of the drug to the approval of recreational (personal) use, without first legalizing medicinal use, for residents over age 21.

ResponsibleOhio’s pockets are deep. Two million dollars were invested in the petition drive, and the group will spend another $20 million in the days leading up to the vote on tactics such as a bus tour, advertising and door-knocking. The organization has also secured Ohio’s top Democratic election lawyer and the data-analysis team used for both of Obama’s presidential campaigns.

ResponsibleOhio’s proposal restricts the growth of commercial crops to 10, specifically listed facilities, technically making the industry an oligopoly. The facilities have been purchased or put under contract by a group of at least 20 affluent investors, many of which are celebrities. Over 1,100 licenses would also be awarded for the remaining facets of the industry. In addition, the group’s ballot language permits individuals to buy a $50 yearly license to grow up to four flowering plants and possess eight ounces of homegrown marijuana. These growers would be prohibited from selling what they produce.

Issue 3 would be a constitutional law change. In response to the proposed Marijuana Legalization Amendment, the Ohio Legislature constructed Issue 2, a measure for the ballot that would ban “a monopoly, oligopoly or cartel” in the state, particularly concerning federally controlled substances, including marijuana. Secretary of State Jon Husted explained that if both measures are approved, the Legislature’s Issue 2 would trump the marijuana amendment. However, if both ballot issues pass, a court case will likely follow.

Although there is opposition, including some state Republican officials, the Ohio Chamber of Commerce, the Ohio chapter of the National Federation of Independent Businesses (NFIB), Ohio Retailers Association, the Ohio Manufacturers’ Associations, and the Ohio Farm Bureau Federation, a July Quinnipiac University poll found that Ohioans are backing legalization 52% to 44%.

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