A sharp-eyed Portager reader alerted us to a strange conflict between local and state laws governing medical marijuana dispensaries.
Ravenna City Council on March 19, 2018, approved legislation requiring dispensary owners to pay:
- A non-refundable $350 application and investigation fee with each application
- An annual non-refundable $250 application and investigation fee to renew each application
- An annual, non-prorated $25,000 license fee, plus an amount equal to 1.5% of the dispensary’s gross annual sales above $1.25 million to be paid within 60 days of the initial and renewal application’s expiration date.
All well and good, except Ohio law effective Sept. 30, 2021, forbids any political subdivision to “levy any tax or fee on cultivators, processors, or dispensaries that is based on those businesses’ gross receipts or that is the same as or similar to any tax or fee imposed by the state.”
The state Board of Pharmacy requires dispensary owners to pay the following fees:
- $5,000 application fee
- $70,000 certificate of operation, required every two years, plus $10,000 if it’s not filed on time
- Additional fees ranging from $50 to $500 for each employee, renewable every two years
- $5,000 fee to change dispensary ownership
- $5,000 fee for relocation
- $5,000 fee for major modification or renovation
- $100 fee per advertisement for advertising approval
The legalities were hypothetical for years because Ravenna did not have a medical marijuana dispensary. That changed on May 16, when the Ohio Board of Pharmacy awarded a provisional license to Simple AG Ohio, which intends to open a dispensary at 554 N. Chestnut St.
Ravenna Law Director Frank J. Cimino agrees that state law trumps local law. The city, he said, is in the process of repealing the $25,000 license fee and the percentage fee of dispensary sales.
“We’ve never enforced it, obviously,” he said. “The one that was passed, the state stepped in and put the barrier in, and so none of those provisions can be effectively implemented.”
Though he pledged to double check if the lesser fees will pass state muster, Cimino said he believes the city has the right to charge them.
“They’re coming into the city and asking to use this location or that location. I think we have a right to impose our own local fees because we’re supposed to put together an application for them to sign,” he said.
City leaders have already met with Simple AG Ohio representatives to iron out the company’s plans, the city’s approval process, and issues related to parking and traffic, Cimino said.
Per state rules, the company has 270 days from the date of issuance (May 16) to prove to the state that they have complied with all rules and regulations. They may then apply for the certificate of operation that will allow them to begin selling their products.
Correction: An earlier version of this article incorrectly stated the Ravenna law was passed in 2019. It was passed in 2018.
Wendy DiAlesandro is a former Record Publishing Co. reporter and contributing writer for The Portager.