ANNAPOLIS, MD—Maryland collected more than $18.4 million in tax revenue from adult-use cannabis sales between April and June, the Maryland Comptroller’s Office announced Friday.
The Central Region of the state, which includes Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, and Howard counties, generated the largest share of revenue, with more than $8 million collected. The Capital region, which includes Montgomery and Prince George’s counties, was second with more than $4.1 million.
The revenue was collected at a 9% sales tax rate, which was in effect for that period. A new tax rate of 12% took effect on July 1, with the additional 3% to be allocated to Maryland’s General Fund.
The Maryland Cannabis Reform Act of 2023 directs the distribution of the tax revenue to various funds. After covering the Maryland Cannabis Administration’s operational and administrative expenses of nearly $9.8 million for the quarter, the remaining revenue was distributed as follows:
- Community Reinvestment and Repair Fund (CRRF): $3,003,593 was allocated to this fund, which uses 35% of quarterly revenues for community-based initiatives in areas disproportionately affected by past cannabis prohibition.
- Maryland Counties: $429,085 was distributed to counties based on the percentage of revenue collected from their area.
- Cannabis Public Health Fund: $429,085 was allocated to this fund to address the health effects of adult-use cannabis legalization.
- Cannabis Business Assistance Fund: $429,085 was distributed to this fund, which assists small, minority-owned, and women-owned businesses entering the cannabis industry.
- General Fund: The remaining $4,290,847 was allocated to the state’s General Fund.
The Comptroller’s Office releases quarterly reports on cannabis tax revenue, which are available on its website.
