Comptroller Brooke E. Lierman today announced that Maryland collected more than $18 million in adult-use cannabis sales tax revenue between July and September of 2024, an 18% decline from the previous quarter of sales ending June 2024. 

“Over the last year, we have witnessed the cannabis industry grow exponentially, serving as an avenue for job growth, economic growth, and innovation,” Comptroller Lierman shared. “This will continue to be an important revenue source as we make investments in transforming Maryland into a more equitable, resilient, and prosperous state and address the social and public health impacts of cannabis legalization.”

Region	Revenue Collected
Capital	$3,954,759
Central	$8,308,443
Eastern	$2,448,731
Southern	$818,703
Western	$2,761,389
Total	$18,292,024

Table 1: Q2 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.

 

The Maryland Cannabis Administration will receive $6,780,090 to cover operating expenses. The remainder of $11,511,934 will be distributed among the following funds as outlined under the law:

• Community Reinvestment and Repair Fund (CRRF): $4,029,177
  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: $575,597
  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: $575,597
   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: $575,597
  5% 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: $5,755,967
  After required disbursements, the remainder of quarterly revenues will be allocated to Maryland’s General Fund.

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

The Maryland Cannabis Administration has developed information and resources for responsible adult cannabis use, which can be found at: https://cannabis.maryland.gov/Pages/BeCannabisSmart.aspx.