Maryland’s full House of Representatives has given overwhelming approval to legislation that would exempt certain cannabis transactions from the state’s sales and use tax.
House Bill 619, passed by the House today by a vote of 110 to 23, would expand an existing tax exemption to include sales between licensed cannabis businesses and registered cannabis nurseries. The proposal now moves to the state’s Senate, with approval in that chamber putting the measure on the desk of Governor Wes Moore.
Currently Maryland’s tax code exempts medical marijuana and sales between licensed cannabis businesses from the state’s sales and use tax. House Bill 619 would add an additional exemption for transactions between licensed cannabis businesses and registered cannabis nurseries. If enacted, the tax exemption would take effect on July 1, 2025.
Maryland voters approved recreational marijuana legalization through a ballot measure in November 2022. The state’s adult-use market opened on July 1, 2023, allowing those 21 and older to buy marijuana from licensed retailers, with sales taxed at 9%.
In January, legal marijuana sales in Maryland reached $94 million, pushing total sales since launch to approximately $1.8 billion.
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