House Bill 619 has been approved by the Maryland House Ways and Means Committee, advancing a measure that would exempt certain cannabis transactions from the state’s sales and use tax.
A marijuana nursery.
The bill, filed by the committee on January 23, would expand an existing tax exemption to include sales between licensed cannabis businesses and registered cannabis nurseries.
The legislation amends Article 11–245 of Maryland’s tax code, which currently exempts medical marijuana and sales between licensed cannabis businesses from the state’s sales and use tax. House Bill 619 would add an exemption for transactions between licensed cannabis businesses and registered cannabis nurseries. If enacted, the tax exemption would take effect on July 1, 2025.
Proponents of the bill argue that reducing costs for cultivators and retailers could strengthen Maryland’s cannabis industry by making operations more sustainable and improving access to quality products. They also contend that the bill will encourage more nurseries to register, increasing the availability of high-quality cannabis strains and fostering a more competitive market.
Maryland voters approved the legalization of recreational marijuana through a ballot measure in November 2022. The state’s adult-use market officially launched on July 1, 2023, allowing those 21 and older to purchase marijuana from licensed retailers. The transition from a medical-only market to full legalization has led to significant economic growth in the industry.
In January, Maryland generated $94 million in legal marijuana sales, bringing the all-time total to around $1.8 billion.
