ANNAPOLIS, Md. — The Maryland Office of the Comptroller reported on June 10, 2025, that the state collected $17,510,109 in tax revenue from adult-use cannabis sales during the first quarter of 2025. The Central Region, encompassing Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, and Howard counties, generated the highest share at $7,923,856. The revenue stems from a 9% tax rate on adult-use cannabis and products, set to increase to 12% on July 1, 2025, with the additional 3% allocated to the state’s general fund.
Under the Cannabis Reform Act of 2023, the Comptroller’s Office oversees the collection of sales and use tax from cannabis retail sales. The revenue is distributed to various funds to support community initiatives, public health, business assistance, and county governments. The Maryland Cannabis Administration received $6,780,090 this quarter to cover operational and administrative expenses.
The Community Reinvestment and Repair Fund (CRRF) received $3,755,506, or 35% of quarterly revenues, to support communities disproportionately affected by prior cannabis prohibition enforcement. The Office of Social Equity determines the distribution percentages for each county. Maryland counties were allocated $536,500, or 5% of the revenue, based on their share of collections, with half of those funds directed to municipalities hosting cannabis dispensaries.
The Cannabis Public Health Fund and the Cannabis Business Assistance Fund each received $536,500, representing 5% of the quarterly revenue. The Public Health Fund addresses health impacts tied to cannabis legalization, while the Business Assistance Fund supports small, minority-owned, and women-owned businesses in the cannabis industry through fiscal year 2028. The remaining $5,365,009 was allocated to the state’s general fund.
By region, the Capital Region contributed $3,856,339, the Eastern Region $2,165,779, the Southern Region $831,090, and the Western Region $2,733,042. The Comptroller’s Office publishes quarterly tax revenue reports, accessible via the Maryland Comptroller’s website. The Maryland Cannabis Administration also provides resources for responsible cannabis use, available through their Be Cannabis Smart initiative.
The increase in the tax rate to 12% was approved by the General Assembly during the 2025 legislative session to bolster state funding. The Cannabis Reform Act ensures that revenue distribution prioritizes equity and public welfare. For instance, the CRRF targets areas impacted by historical cannabis enforcement disparities, aiming to fund community-based initiatives. The allocation to counties supports local governments, particularly those with active cannabis dispensaries, fostering economic benefits at the municipal level.
The Cannabis Business Assistance Fund is designed to lower barriers for underrepresented groups entering the cannabis market, promoting diversity in the industry. Meanwhile, the Public Health Fund addresses potential health concerns related to cannabis use, such as education campaigns or treatment programs. The Maryland Cannabis Administration plays a key role in overseeing these efforts, ensuring compliance and promoting safe use.
As Maryland continues to develop its adult-use cannabis market, the Comptroller’s Office remains responsible for transparent reporting. The quarterly reports provide detailed breakdowns of revenue by region and fund allocation, offering insight into the economic impact of cannabis legalization. With the tax rate increase approaching, the state anticipates further growth in revenue, which will continue to support these designated programs.
