BALTIMORE – Comptroller Brooke E. Lierman yesterday announced that the State of Maryland collected more than $12 million in cannabis sales tax revenue between July and September 2023, the first quarter of sales. This revenue will be distributed in early 2024 to several funds as required by the Cannabis Reform Act of 2023, which legalized personal use of cannabis for adults over the age of 21.
Under state law, the Comptroller of Maryland is responsible for collecting and disbursing sales and use tax revenue generated from the retail sale of adult-use cannabis in the state. Maryland law taxes adult-use cannabis and cannabis products at a rate of 9%. Revenue from Maryland’s central region accounted for 45% of those funds.
Capital – $3,050,505
Central – $5,490,377
Eastern – $1,267,703
Southern – $786,601
Western – $1,563,362
Total – $12,158,547
Table 1: Q3 cannabis tax revenue collected by region. All numbers are rounded to the nearest whole dollar.
“Transparency is crucial to earning and maintaining the public trust, and my Office is committed to helping Marylanders understand what this new part of the economy is generating in taxes,” Comptroller Lierman said. “We look forward to sharing information with the public every quarter, tracking the growth of the adult-use cannabis industry in Maryland, and positioning our state for a more prosperous future.”
“The strong revenues collected in the first quarter reflect the strength of the rollout of Maryland’s newly formed adult recreational cannabis industry,” said Maryland Governor Wes Moore. “These funds are critical to supporting social equity and economic growth, which are central to the Moore-Miller Administration’s values, and we’ll continue to work in partnership to promote inclusion, accountability, and fairness across Maryland’s cannabis industry.”
“These funds are critical to the State’s efforts to ensure a safe, accessible and equitable rollout of cannabis legalization,” said Maryland Cannabis Administration Acting Director Will Tilburg. “Thanks to the quick and transparent work of the Office of the Comptroller, local communities and small businesses in Maryland will benefit from these revenues in 2024 and beyond.”
Quarterly revenues, including the more than $12 million in recent revenue, will be divided among funds as outlined in the law and also detailed in this report:
- Community Reinvestment and Repair Fund (CRRF): $4,255,491
35% of quarterly revenues fund community-based initiatives serving areas disproportionately impacted by the enforcement of cannabis prohibition prior to July 1, 2022. Funds from the CRRF will be distributed to each county based on percentages formulated by the Office of Social Equity.
- Maryland Counties: $607,927
5% of quarterly revenue is allocated to Maryland counties based on the percentage of revenue collected from that county. Counties will then distribute 50% of funds to municipalities with cannabis dispensaries that contribute to sales and use tax revenue.
- Cannabis Public Health Fund: $607,927
5% of quarterly revenues will be distributed to the Cannabis Public Health Fund to address the health effects associated with the legalization of adult-use cannabis.
- Cannabis Business Assistance Fund: $607,927
5% of quarterly revenues will be distributed to the Cannabis Business Assistance Fund through FY 2028 to assist small, minority–owned, and women–owned businesses entering the adult–use cannabis industry.
- General Fund: $6,079,2746
The remainder of quarterly revenues, after required disbursements, will be allocated to Maryland’s General Fund.
The Office of the Comptroller will continue to release quarterly reports on the tax revenue generated from cannabis sales in the state that will be available on the webpage: https://marylandtaxes.gov/reports/index.php
Great Post! The $12 million in cannabis taxes collected during the first quarter of recreational sales in Maryland is a notable development with implications for the economy, job market, and regulatory landscape. Continued monitoring and adaptation of policies based on data and experiences will be essential to ensuring the long-term success of legalized cannabis markets.