Canton Offsets Corporate Tax Revenue Dip with Cannabis Funds

City officials say the decrease is due to businesses overestimating profits and receiving refunds, but cannabis tax revenue helps fill the gap.

Jan. 31, 2026 at 5:39am

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Canton, Ohio is facing a $2.3 million decline in corporate income tax revenue due to businesses overestimating profits and receiving refunds. However, the city is offsetting this loss with over $1 million in cannabis tax revenue received in January, with an expected $175,000 each quarter going forward. City officials say the cannabis funds will help stabilize the general fund and allow them to review capital spending requests to prepare a balanced budget.

Why it matters

Canton's reliance on corporate income tax revenue has made the city vulnerable to budget shortfalls when businesses overestimate profits. The emergence of cannabis tax revenue as a new funding source provides a timely offset that can help the city maintain critical services and infrastructure investments.

The details

Canton's corporate income tax receipts dropped from $8 million in 2024 to $6.2 million in 2025, due to $2.3 million in refunds to businesses that had overpaid their municipal taxes. Despite the revenue decline, city officials say there are no signs of major business closures or layoffs. To offset the loss, Canton received over $1 million in cannabis tax revenue in January, with an expected $175,000 each quarter going forward. The cannabis tax revenue will go to the city's general operating fund, helping to stabilize spending in other areas that rely on income tax.

  • In January 2026, Canton received just over $1 million in cannabis tax revenue from the state.
  • Going forward, the city expects to receive $175,000 in cannabis tax revenue each quarter.

The players

Mark Crouse

Canton's Finance Director.

Michael McEnaney

Canton's Chief Deputy Treasurer.

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What they’re saying

“Of all times to hit, this is the perfect time for the City of Canton because we offset some of the expenditures that we're going to have. That was kind of a blessing in disguise.”

— Mark Crouse, Finance Director

What’s next

City officials are working to adjust Canton's temporary and final budgets to account for the corporate tax revenue decline and the influx of cannabis tax funds. Their focus is on keeping the general fund stable, reviewing capital spending requests, and preparing a balanced budget for March.

The takeaway

Canton's reliance on corporate income tax revenue made the city vulnerable to budget shortfalls, but the emergence of cannabis tax revenue as a new funding source has provided a timely offset. This allows the city to maintain critical services and infrastructure investments, demonstrating the value of diversifying municipal revenue streams.