Ohio launched adult-use cannabis sales in August 2024, converting the established medical program. Medical operators who didn't update their books for the new excise tax are exposed to compliance risk. 420Ledger provides cannabis bookkeeping and 280E compliance built for Ohio's transition
Book a Free ConsultationOhio's transition from medical-only to adult-use means many dispensaries need updated books. The new 10% excise tax requires changes to chart of accounts, tax tracking, and remittance procedures that the medical program did not have.
Chart of accounts for Ohio's 10% excise plus 5.75% sales tax structure. Medical and adult-use sales tracked separately. Monthly close with METRC reconciliation.
Ohio has no state corporate income tax — COGS structuring still matters for federal returns. We maximize COGS and prepare federal and OH state returns for both license types.
OH-based MSOs with multi-state footprints need consolidated reporting. 420Ledger covers all 27 states in your network.
Ohio payroll tax compliance for cannabis employees, including federal plant-touching business requirements.
Converted from a medical OH license? We update your books for adult-use excise tax tracking and ensure clean, compliant financial records.
Ohio has no state corporate income tax — the CAT (Commercial Activity Tax) is a gross receipts tax — so federal §280E has no direct state income tax impact. Ohio's combined ~15.75% state tax rate on adult-use retail plus the federal 280E disallowance creates a significant tax burden for OH operators. For dispensaries that recently transitioned from medical, this is a new financial reality that requires accounting systems built for adult-use compliance.
Ohio's adult-use cannabis market launched in August 2024, converting the existing medical program. Ohio imposes a 10% adult-use excise tax plus the standard 5.75% state sales tax. Ohio has no state corporate income tax (it uses the Commercial Activity Tax, a gross receipts tax), so federal 280E has no state-level income tax impact. Medical dispensaries that converted to adult-use licenses need updated books to reflect the new excise tax that didn't apply under the medical program.
You need an accountant familiar with the OH Division of Cannabis Control's requirements and Ohio's combined cannabis tax structure. Dispensaries that converted from medical to adult-use licenses need books updated for the 10% excise tax — operators who haven't made this update are potentially misreporting their tax obligations.
Ohio adult-use cannabis is subject to a 10% excise tax on retail sales plus the standard 5.75% state sales tax, for a combined ~15.75% rate. Medical cannabis has different tax treatment. Each tax layer must be tracked separately and remitted on its own schedule to the appropriate agency.
Ohio has no state corporate income tax — the CAT is a gross receipts tax unaffected by §280E — so federal 280E has no state-level income tax impact in Ohio. Federal 280E still applies to federal returns, and COGS structuring remains important for OH operators to reduce federal tax liability
Ohio's adult-use sales began August 6, 2024. Medical dispensaries that converted face new tax obligations — the 10% adult-use excise tax was not part of the medical program. Operators must update their chart of accounts, tax tracking systems, and remittance schedules. 420Ledger helps converted OH operators get their books right for the adult-use era efficiently.
Flat monthly rates. All plans include 280E COGS analysis, monthly close, and OH tax tracking.
Ohio's adult-use era is here. Get your books updated and compliant — book a free consultation with 420Ledger.
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