Key Takeaways
- Maryland’s cannabis sales tax revenue reached over $18.4 million from April to June 2025, with the Central Region leading contributions.
- The tax rate for adult-use cannabis increased to 12% on July 1, 2025, as mandated by the Budget Reconciliation and Financing Act.
In a recent press release, the Maryland Office of the Comptroller disclosed that the State of Maryland brought in from April and June 2025, more than $18.4 million from cannabis sales tax revenue (1). The Central Region located in Maryland includes areas, such as Baltimore, Anne Arundel, Howard counties, Harford, and Baltimore City, generated the biggest amount in revenue for the state.
“Under state law, the Comptroller of Maryland is responsible for collecting sales and use tax revenue generated from the retail sale of adult-use cannabis in the state,” as mentioned in the press release (1). On July 1, 2025, adult-use cannabis and cannabis products had their tax rate raised to 12%, as required from the Budget Reconciliation and Financing Act of 2025 (1). Previously, the tax rate for these products sat at 9%. The General Fund will be receiving the additional 3% and will have this updated in the next quarterly report that will include the months of July to September 2025.
As mentioned in the press release, the regional revenue data consisted of:
- Capital
- $4,122,301
- Central
- $8,044,062
- Eastern
- $2,381,912
- Southern
- $913,345
- Western
- $2,910,164
- Total Amount: $18,371,784
The Maryland Cannabis Administrations’ operations and administrative expenses for this quarter are $9,790,089 which will have revenue allocated to cover these costs in accordance with the Cannabis Reform Act of 2023 (1). According to the press release, revenue will be divided into other funds which include (1):
- Community Reinvestment and Repair Fund (CRRF): $3,003,593
- 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: $429,085 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: $429,085
- 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: $429,085
- 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: $4,290,847
- The remainder of quarterly revenues, after required disbursements.
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