The Maryland Office of the Comptroller has issued an updated report for adult-use cannabis sales tax revenue collected between January and March 2024 in the Capital and Central regions. The amended report does not change the overall revenue collected statewide in the first quarter of the calendar year, which was previously reported on June 26.
|
Region |
Revenue Collected |
|
Capital |
$3,710,720 |
|
Central |
$6,742,083 |
|
Eastern |
$1,564,534 |
|
Southern |
$618,218 |
|
Western |
$2,035,554 |
|
Total |
$14,671,110 |
Table 1: Q1 cannabis tax revenue collected by region. All numbers are rounded to the nearest whole dollar.
Adult-use cannabis and cannabis products are taxed at a rate of 9%. The revenue is distributed to several funds as required by the Cannabis Reform Act of 2023, which legalized the personal use of cannabis for adults over the age of 21. Under state law, the Comptroller of Maryland is responsible for collecting and dispersing sales and use tax revenue generated from the retail sale of adult-use cannabis in the state.
Quarterly revenues from adult-use cannabis will be divided among the following funds:
Community Reinvestment and Repair Fund (CRRF): $4,156,888
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: $593,841
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: $593,841
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: $593,841
35% 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: $5,938,412
The remainder of quarterly revenues, after required disbursements, will be allocated to Maryland’s General Fund
Additionally, $2,794,286 will be allocated to the Maryland Cannabis Administration to support operational costs.
The Office of the Comptroller releases quarterly reports on the tax revenue generated from cannabis sales in the state that are available at https://marylandtaxes.gov/cannabis/reports.php
Please visit the Maryland Cannabis Administration for more information on cannabis laws, regulations, data, and related topics.
