According to data released by the Comptroller of Maryland, the state collected over $22.3 million in tax revenue from licensed marijuana sales between April and June of this year.
The marijuana tax revenue garnered in the second quarter of this year marks a 52% increase from the previous quarter.
In Maryland, marijuana sales taxes are broken down by region. Central Maryland generated $11,344,469 in tax revenue, making up the largest portion of the total. The Western region followed with $3,871,696, while the Capital region contributed $3,202,851. The Eastern region reported $3,064,398 in sales taxes, and Southern Maryland brought in $873,597, the lowest amount among the regions.
Altogether, the state’s total marijuana sales tax revenue reached $22,357,011, a considerable increase from the $14,671,110 made in Q1.
In November 2022, Maryland voters approved a referendum to legalize marijuana for adult use. The Maryland General Assembly passed the Cannabis Reform Act of 2023 (H.B. 556/S.B. 516), and Governor Wes Moore signed it into law, legalizing recreational cannabis use. Sales of cannabis to adults over 21 are permitted beginning July 1, 2023, and adults may possess up to 1.5 ounces of cannabis flower, 12 grams of concentrated cannabis, or a total amount of cannabis products that does not exceed 750 mg THC. This amount is known as the “personal use amount.” Retail sales began on July 1, 2023.
Maryland law imposes a 9% sales and use tax on retail sales of adult-use cannabis and cannabis products. The Comptroller of Maryland administers the state’s sales and use tax, which includes responsibility for collecting the tax on the retail sales of adultuse cannabis. The Comptroller is also responsible for the accounting of the funds created through the Cannabis Reform Act and distributing the required funds as detailed in the chart below.
Marijuana taxes are distributed as follows:
- 35% to the Community Reinvestment and
Repair Fund - 5% to Maryland Counties
- 5% to the Cannabis Public Health Fund
- 5% to the Cannabis Business Assistance
Fund - Remaining balance to the state general
fund.
