Today, Maryland’s Senate voted in favor of legislation that would expand the state’s marijuana tax exemptions to include transactions involving licensed cannabis nurseries.
(Photo credit: Prime Cuts Cannabis Nursery).
The proposal, House Bill 619, would exempt transactions between licensed cannabis businesses and registered cannabis nurseries from the state’s sales and use tax. It cleared the House last month in a 110 to 23 vote and received second reading approval in the Senate today. A third and final vote is expected in the coming days. Once passed, the measure will be sent to Governor Wes Moore.
Under current law, Maryland exempts both medical marijuana sales and transactions between licensed cannabis businesses from the state’s 6% sales tax. HB 619 would broaden that exemption to include cannabis nurseries, which play a key role in supplying young plants to cultivators and dispensaries. If signed into law, the change would take effect on July 1, 2025.
The bill’s advancement comes as Maryland’s recreational marijuana market continues to grow. Voters approved legalization through a ballot measure in 2022, with legal sales beginning on July 1, 2023. Adult-use marijuana is taxed at 9%, and in January alone, legal marijuana sales in the state totaled $94 million. Since launching, Maryland’s legal market has generated roughly $1.8 billion in total sales.
