Maryland's Cannabis Sales Surge, Generating Over $14.6M In Revenue

Maryland’s burgeoning adult-use cannabis industry has demonstrated its economic potential, with the state collecting over $14.6 million in sales tax revenue from January to March 2024, according to Comptroller Brooke E. Lierman.

This marks a slight increase from the previous quarter’s revenue, showcasing a consistent upward trend in the industry, Fox Baltimore reported.

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Revenue Distribution And Community Impact

The adult-use cannabis and cannabis products are taxed at a rate of 9%. The revenue generated is distributed across several funds as mandated by the Cannabis Reform Act of 2023, each serving distinct purposes to benefit Maryland communities.

The largest portion, 35% of the quarterly revenue amounting to $4,156,888, is allocated to the Community Reinvestment and Repair Fund (CRRF). This fund supports community-based initiatives in areas disproportionately affected by the enforcement of cannabis prohibition before July 1, 2022. The distribution is managed by the Office of Social Equity and is tailored to each county’s needs.

An additional 5% of the revenue, or $593,841, is allocated to Maryland counties based on the revenue collected from each county. Half of these funds are then distributed to municipalities with cannabis dispensaries contributing to the sales tax revenue, ensuring that the economic benefits of cannabis sales are felt locally.

The Cannabis Public Health Fund also receives $593,841, aimed at addressing health effects associated with the legalization of adult-use cannabis. This fund supports initiatives to monitor and mitigate any public health impacts, ensuring the community’s well-being.

Another 5%, or $593,841, is directed to the Cannabis Business Assistance Fund. This fund, continuing through FY 2028, supports small, minority-owned, and women-owned businesses entering the cannabis industry, fostering diversity and inclusivity within the market.

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The remaining revenue, totaling $5,938,412, is allocated to Maryland's General Fund, supporting a variety of state-funded programs and services.

Economic And Social Benefits

Comptroller Lierman emphasized the broader economic and social implications of the growing cannabis industry. “The growing cannabis industry holds immense potential for economic growth for Maryland,” Lierman stated.

“Reinvesting the revenue from adult-use cannabis sales into communities that were damaged by misguided policies allows us to further create a more equitable, resilient, and prosperous future for all Marylanders.”

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