MARIJUANA TAX DISCUSSED — On Thursday, Wintersville officials discussed pending legislation that would result in tax from recreational marijuana sales being shifted to the state and away from communities like Wintersville where it is sold. -- Warren Scott

WINTERSVILLE — The potential loss of taxes from two marijuana dispensaries operating in the village and a loan for the extension of a water line to an emergency training facility were among matters before Wintersville Council on Thursday.

Mayor Mike Petrella expressed concern about losing tax from the dispensaries, noting there are multiple bills in the statehouse that would divert it to the state.

Gov. Mike DeWine has proposed replacing all revenue streams and tax rates supported through passage of Issue 2 with a 10 percent increase in the state excise tax paid on sales of recreational marijuana.

DeWine has suggested the additional state revenue could be used in expunging marijuana-related convictions and for the state’s 988 suicide hotline, construction and renovations of county jail facilities, the state Department of Public Safety’s investigative unit, local drug task forces and other programs.

But Petrella noted when it was supported by about 57 percent of voters in 2023, Issue 2 called for 36 percent of taxes generated by marijuana dispensaries to go to the communities where they have opened.

Ballot language for the issue stated 36 percent of the planned 10 percent tax would go to “social equity and jobs” programs, an amount that had been estimated at up to $150 million per year, with 25 percent going to education and addiction treatment programs and 3 percent to costs for the state to regulate the new industry.

Petrella estimated about $2.2 million in sales are generated from one dispensary in the village and another $1 million from the other.

He said the estimates are based on sales reported for one of the two businesses by an Internet source.

Petrella once owned the other dispensary, then approved for medical marijuana, but said his estimates aren’t based on its sales at that time.

He said if those estimates are accurate, the village would receive about $108,000 in taxes for one month and $1.3 million for a year.

Petrella said there is other legislation pending that also would shift the taxes from the local communities to the state and he hopes state lawmakers will reconsider.

Councilman Jason Mattern said many voters supported Issue 2 because they believed it would benefit the communities where the dispensaries operate.

Of Petrella’s estimates, he said, “That’s an incredible amount we could be using for infrastructure improvements or recreational opportunities.”

In other business, council authorized Village Administrator Jesse Kosegi to secure a three-year loan from First National Bank for the estimated $88,000 extension of a water line to the training facility operated by Wintersville Fire and Rescue near its station.

Kosegi said the loan will finance the extension of a 400 foot line to the site from Luray Drive, the addition of a hydrant and engineering for the project.

He had advised council earlier the village was approved for a 20-year loan from the Ohio Environmental Protection, in the amount of $125,000 and at 2.1 percent interest, for the project.

But on Thursday, Kosegi advised the loan from the bank, while at 4.8 percent interest, could be repaid in three years, while the village could not pay off the OEPA loan before its 20-year term had ended, ultimately resulting in more interest being owed.

The village administrator said he plans to pay off one-third of the loan from the village’s capital outlay fund in each of the next three years.

Council also authorized Kosegi to enter into a contract for 600 tons of road sale through the Ohio Department of Transportation’s supplier of the material for next year.

He said the cost per ton hasn’t been determined but was about $69 last year.

Kosegi said the village has more than 100 tons of salt remaining from last year, when it also ordered 600 tons.

But he said since he became the village’s administrator, he’s reduced its yearly salt order from 1,500 to 900 and finally 600.

Also on Thursday, Petrella announced residents may leave bulky trash out for collection during the village’s spring cleanup in June.

Residents whose garbage normally is picked up on Tuesdays should leave such items out on June 2, while those on the village’s Wednesday garbage collection routes should leave theirs out on June 9.

The spring collection will continue June 16 for Thursday’s garbage routes and on June 23 for Friday’s.

The following items won’t be accepted: tires, mattresses, computers, televisions and other electronics; refrigerators, freezers, air conditioners, dehumidifiers, construction materials, petrochemicals and other hazardous materials, including fuels, oils and solvents.

Each summer the JB Green Team holds a hazardous household waste collection where such material may be brought.

This year’s event will be held from 9 a.m. to 1 p.m. June 14 at its building in the Jefferson County Industrial Park.

Council’s next meeting will be held at 7 p.m. May 1 at the Municipal Building.