With adult-use cannabis sales launching in Maryland on July 1, 2023, the state has ramped up its taxation cannabis sales revenue. Maryland cannabis industry is quickly growing as the state relies on a 9% sales and use tax on adult-use cannabis.
During the first full year, the sales data from both medical and adult-use cannabis indicates that Maryland exceeded USD 1.1 billion in sales. This indicates a fully matured market ready to expand and operate.
As of June 2024, Maryland's total revenue from the cannabis tax stood at USD 72.9 million for the 2024 fiscal year, where tax revenue reporting period concluded on June 30, 2024. This revenue is based on dispensaries participating in sales based taxation where the 9% tax is collected at the dispensation counter and is remitted to the Maryland Comptroller’s Office.
There has been a consistent increase in revenue since the adult-use program launch.
Improvements in Licensing, Reporting, and Enforcement Systems, as well as increased participation in the market, explain the observed growth.
The revenue obtained from cannabis sales is allocated to different programs at the state level. As the Maryland Comptroller outlines:
Maryland prioritizes economic growth and aids community development, particularly to those regions which suffered from stringent cannabis enforcement policies.
The cannabis tax revenue is expected to increase further as the tax rises from 9% to 12% in July 2025. This change is expected to enhance Maryland’s revenue from the cannabis industry which may result in tax receipts climbing above the $100 million mark. This would strengthen the position of cannabis in budgeting plans for the state.
Maximize compliance and plan for upcoming tax changes — contact Watter CPA today to navigate Maryland cannabis tax revenue reporting with confidence!
