Lakewood Creating Host Community Cannabis Fund

Ohio city to receive $743,400 in first disbursement from state's recreational marijuana tax revenue.

Published on Feb. 13, 2026

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The city of Lakewood, Ohio is creating a Host Community Cannabis Fund after receiving its first disbursement of $743,400 from the state's 10% tax on adult-use cannabis sales. The funds, which are expected to total $500,000 annually as long as Lakewood maintains profitable dispensaries, will be used for public safety and accessibility capital priorities, as well as potentially toward creating equitable locker room space for female police officers.

Why it matters

The creation of the Host Community Cannabis Fund allows Lakewood to direct the tax revenue generated from local cannabis sales toward community needs and priorities, rather than having the funds go into the city's general budget. This provides an opportunity for the city to invest in public safety, accessibility, and equity initiatives.

The details

Lakewood will receive 36% of the 10% state tax on adult-use cannabis sales, with the first disbursement totaling $743,400. The city plans to use these funds for public safety and accessibility capital projects, as well as potentially toward creating better locker room facilities for female police officers. The funds were not included in Lakewood's 2026 budget due to uncertainty around the timing of the disbursement, so the city is now establishing a dedicated Host Community Cannabis Fund to manage the revenue.

  • The Ohio Department of Taxation recently began distributing the recreational marijuana tax revenue.
  • Lakewood received its first disbursement of $743,400 in February 2026.
  • Lakewood expects to receive $500,000 annually from the Host Community Cannabis Fund as long as the city maintains profitable dispensaries.

The players

Lakewood City Council

The governing body of the city of Lakewood, Ohio that is establishing the Host Community Cannabis Fund to manage the tax revenue from local cannabis sales.

Sarah Kepple

The president of Lakewood City Council who stated the city has been anticipating these funds and will prioritize public safety and accessibility initiatives.

Kyle Baker

The vice president of Lakewood City Council who is working with Council President Kepple on determining how to use the cannabis tax revenue.

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What they’re saying

“We've been looking forward, but weren't sure if or when we were going to be receiving these funds because the state was a little slow to distribute them.”

— Sarah Kepple, Lakewood City Council President (cleveland.com)

“This lets us prioritize how we want to use these funds for our community.”

— Sarah Kepple, Lakewood City Council President (cleveland.com)

What’s next

Lakewood City Council plans to decide this winter into early spring how to allocate the Host Community Cannabis Fund revenue, including potential investments in public safety, accessibility, and equitable facilities for female police officers.

The takeaway

Lakewood's creation of a dedicated Host Community Cannabis Fund allows the city to strategically direct the tax revenue from local cannabis sales toward community priorities, rather than having the funds go into the general budget. This provides an opportunity for Lakewood to invest in public safety, accessibility, and equity initiatives that directly benefit residents.