Maryland has reported over $14.6 million in adult-use cannabis tax revenue from January to March 2024, marking a slight increase from the previous quarter. This revenue, derived from a 9% tax on cannabis products, is a result of the Cannabis Reform Act of 2023, which legalized adult-use cannabis for those over 21.
The revenue distribution is mandated by state law, ensuring that funds are allocated to several crucial areas. The Comptroller of Maryland oversees the collection and dispersal of this tax revenue, aiming to reinvest in communities and support public health and business initiatives.
Revenue Distribution Across Maryland
The tax revenue collected is divided among five regions: Capital, Central, Eastern, Southern, and Western Maryland. Comptroller Brooke E. Lierman emphasized the economic potential of the cannabis industry, stating, "The growing cannabis industry holds immense potential for economic growth for Maryland. 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."
Allocation of Funds
The $14.6 million in revenue is distributed among various funds and purposes as outlined by the Cannabis Reform Act of 2023:
- Community Reinvestment and Repair Fund (CRRF):
- Amount: $4,156,888
- Purpose: This fund supports community-based initiatives in areas disproportionately affected by past cannabis prohibition enforcement. Distribution is based on percentages determined by the Office of Social Equity.
- Maryland Counties:
- Amount: $593,841
- Purpose: This allocation is distributed to counties based on the revenue collected from each county. Half of this amount is then given to municipalities with cannabis dispensaries that contribute to the sales tax revenue.
- Cannabis Public Health Fund:
- Amount: $593,841
- Purpose: This fund addresses the public health impacts associated with the legalization of adult-use cannabis.
- Cannabis Business Assistance Fund:
- Amount: $593,841
- Purpose: This fund supports small, minority-owned, and women-owned businesses entering the adult-use cannabis industry, with allocations planned through FY 2028.
- General Fund:
- Amount: $5,938,412
- Purpose: The remaining revenue after required disbursements is allocated to Maryland's General Fund.
Additionally, $2,794,286 is allocated to the Maryland Cannabis Administration to cover operational costs.
Regular Reporting and Public Information
The Office of the Comptroller releases quarterly reports on cannabis tax revenue, which are available to the public. These reports provide transparency and insight into the financial impact of the cannabis industry in Maryland. For more detailed information, the public is encouraged to visit the Maryland Cannabis Administration's website.
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