CLEVELAND, Ohio — Cuyahoga County residents have been paying a “sin tax” on cigarettes and alcohol since 1990.
The tax has financed the construction of the county’s three major professional sports venues and was supposed to cover the long-term upkeep, at least through 2034. But spending has long-since outpaced revenues, leading to increased reliance on Cleveland’s and Cuyahoga County’s general funds.
Now, County Executive Chris Ronayne hopes to seek voter approval to significantly increase the tax, so it can once again cover future stadium costs.
“Our goal at the county is to take the general fund out of the equation on financing of the ballpark and arena,” Ronayne recently told cleveland.com and The Plain Dealer.
Here’s what you need to know about it.
1. What is the sin tax?
The county’s sin tax is an excise tax on cigarettes and alcohol sold in Cuyahoga County. The current rates are:
4.5 cents per pack of cigarettes
1.5 cents per 12-ounce container of beer
6 cents per 750-milliliter bottle of wine
24 cents per gallon of cider
32 cents per gallon of mixed beverages
$3 per gallon of hard liquor
The tax is collected at the point of sale as part of the county’s broader sales tax system. Vaping and marijuana products are not taxed.
2. When was it approved?
Voters first approved a 15-year sin tax in May 1990 to build Jacobs Field and Gund Arena, which today are known as Progressive Field and Rocket Arena, respectively.
In November 1995, voters approved a 10-year extension – which would take it through 2015 –to build a new football stadium after the original Cleveland Browns relocated to Baltimore. That extension backed bonds used to construct Huntington Bank Field, where the team currently plays.
In May 2014, voters approved another 20-year extension. Collections are supposed to be split between the three facilities to fund major capital repairs, such as structural work, scoreboards, mechanical systems and major renovations. Money cannot be used for routine maintenance or team payroll.
3. Who collects the tax?
The State of Ohio collects all sales taxes and distributes the sin tax portion to Cuyahoga County each month.
4. How much does the tax raise?
In recent years, annual collections have generally ranged between $13 million and $16 million, though revenue can fluctuate due to changing cigarette and alcohol sales patterns.
Because smoking rates have steadily dropped since 1990, cigarette tax revenue has decreased over time, increasing reliance on alcohol-related collections.
5. How is the money spent?
The City of Cleveland owns the Cleveland Browns’s stadium and approves repair expenses.
The nonprofit Gateway Economic Development Corp. owns Progressive Field and Rocket Arena and enforces team leases on behalf of the county. Gateway’s board, appointed by city and county officials, sign off on spending at the ballpark and arena.
Under the lease agreements with the respective teams, Gateway is responsible for paying all capital repairs at Progressive Field and capital repairs over $500,000 at Rocket Arena.
6. What’s next?
The current sin tax is set to expire in 2035.
County Executive Chris Ronayne said officials from Cleveland and the city’s three major sports teams are helping petition the state for permission to triple or quadruple the county’s sin tax rate, which could raise $15 million to $19 million per stadium to cover repairs each year, if sales remain steady.
The state previously approved doubling the tax rate, but Ronayne declined to pursue it, saying it would not cover the full need and leave local governments on the hook for subsidizing remaining costs. The city and county recently provided Gateway a $40 million bailout for repairs at Rocket Arena and Progressive Field because it didn’t have enough money to cover its bills.
Increasing – and likely extending — the sin tax would require voter approval, a question that could be on the ballot later this year.
“Voters could see a sin tax initiative as early as November 2026, but the timeline and specifics aren’t 100% clear right now,” Ronayne’s Director of Communications Kelly Woodard recently told cleveland.com.