💸 The Tape

In a plot twist no one asked for—but everyone kind of expected—Ohio’s local governments are in full rebellion mode over proposed state changes to marijuana tax revenue. After voters greenlit adult-use cannabis in 2023 with the understanding that 36% of the tax revenue would go to municipalities hosting dispensaries, state lawmakers (largely Republican-led) are now suggesting a "small" adjustment. By "small," they mean slashing that 36% to 20%, or nixing it altogether. Naturally, cities are not thrilled.

According to a study from Ohio State University's Moritz College of Law (a.k.a. the people with actual spreadsheets), 38 municipalities have made it crystal clear: They’re “unequivocally opposed” to these changes. Translation? “Don't mess with our weed money.”

The OSU study surveyed mayors, city managers, and other local officials who had big plans for this cash infusion. Think police departments with gas in the tank, potholes finally meeting their demise, and maybe even slightly less depressing parks. In short, this wasn’t going to fund interpretive dance collectives—it was about core services.

Ravenna officials said marijuana revenue could help avoid tax hikes. Monroe made it clear they took the leap into adult-use cannabis precisely because of the revenue promise. Euclid called the proposed change a “broken promise.” Lorain, never one to mince words, accused lawmakers of assuming “we didn’t know what we were voting for.” Spicy.

Under the current law, Ohio expects to rake in $62 million from marijuana excise taxes in fiscal 2025. That would mean $22 million going straight to the communities that actually deal with the zoning, permitting, and occasional neighbor complaints about dispensary parking lots.

But Governor DeWine’s budget proposal? It says poof—no more local allocations. Even better (or worse, depending on your blood pressure), it suggests doubling the marijuana tax to 20%.

Meanwhile, the Ohio General Assembly hasn’t offered much in the way of explanation, unless you count “voters didn’t really understand what they were voting for” as a compelling policy argument.

The bottom line? Cities are being told to build the house, clean the house, and maintain the house—with zero share of the rent. And while lawmakers insist they respect voters’ wishes, their proposed bills look an awful lot like a legislative magic trick: now you see the money, now you don’t.

📈 Dog Walkers.

Minnesota In Flux

What’s Going On Here: In Minnesota’s budding cannabis industry, Todd Thompson, a Chippewa Tribe member, opened shop on tribal land only to be raided the next day. Despite a state law legalizing weed and a tribal constitution that he believes supports his right to sell it, a judge ruled the state can still prosecute him. The case highlights the tangled mess of sovereignty, equity, and regulation, where “social equity” sounds great on paper—unless you're Indigenous, poor, and lacking private equity connections.

Why Should You Care: Minnesota has had problems since inception and this market has been rolling out at a snails pace. This is just another wrench to throw into the mix.

NY Still Can’t Move With Pace

Whats Going On Here: New York legalized cannabis lounges back in 2021, but four years later, not a single joint-friendly hangout has opened—because the Office of Cannabis still hasn’t written the rules. Legal dispensary owners like Arish Halani of Herbwell are fuming as they pay sky-high rent for lounge-ready spaces that remain unused. While state officials cite supply chain priorities and public health concerns, frustrated operators see a missed opportunity—and a haze of red tape where smoke should be. Meanwhile, the black market still tokes on.

Why Should You Care: Just get it together already guys. In this instance time is money and the people whose precious capital is evaporating can’t afford it much longer.

🗞️ The News

📺 YouTube

TDR’s Biggest Developments for the Week in Cannabis - March 17th | Trade to Black

What we will cover:

✅ Host Shadd Dales breaks down the biggest developments in the cannabis industry for the week of March 17.

This week’s spotlight falls on cannabis rescheduling, as uncertainty grows under the Trump administration. Despite previous support, President Trump’s recent appointments and stalled progress have raised serious doubts about federal reform.

In Texas, lawmakers are advancing a controversial bill that could shut down the state’s hemp industry, despite strong public support for regulation over prohibition. Meanwhile, Edible Brands enters the hemp space with the launch of Edibles.com, beginning deliveries in Texas.

On the earnings front, High Tide Inc. (NASDAQ: HITI) posted record revenues but saw a dip in EBITDA—while rival SNDL Inc. (NASDAQ: SNDL) made headlines with a 5.4% stake in High Tide. Auxly Cannabis Group Inc. (TSX: XLY) also impressed, with strong margins and reduced debt.

As cannabis stocks react to policy and earnings, investors are watching closely. And with international developments like France inching toward medical cannabis legalization, the global landscape continues to evolve.