Ohio’s medical cannabis industry could eventually generate between $200 million and $400 million in annual retail sales via dispensaries once the market matures, according to preliminary estimates by Marijuana Business Daily.
That would translate into as much as $23 million in taxes for Ohio if state sales taxes of 5.75% are applied.
“But from what we can tell now, this will be one of the larger medical cannabis markets in the country, and particularly in the eastern half of the country. It also has the potential to give Ohio’s tax coffers a sizable boost, which will benefit communities across the state.”
Given the large number of unknowns with marijuana regulations in the state at this point, the estimates include both a conservative figure on the low end and a more optimistic projection on the high end. They take into account the list of qualifying conditions for medical marijuana, the state’s population, the business-friendly nature of Ohio’s MMJ laws, the average patient spend in other markets, rules on doctors that want to recommend cannabis, and data from states with similar programs.
Getting enough doctors on board could prove problematic, as they will have to jump through several hoops.
However, the inclusion of chronic, severe and intractable pain on the list of qualifying conditions is huge. In other states that allow patients to obtain marijuana for pain such as Colorado and Michigan, typically anywhere from 1%-2% of the population signs up for the medical cannabis program.
Ohio hasn’t revealed how many business licenses it will award – the total will be based on the state’s population and the number of patients that sign up for the program. So it’s difficult to determine exactly how many business opportunities there will be, but there could be hundreds of licenses awarded.