ANNAPOLIS, MD — The Maryland Office of the Comptroller announced on December 22, 2025, that the state collected $26,876,374 in sales and use tax revenue from adult-use cannabis sales between July and September 2025. This period marks the first full quarter under the increased 12% tax rate, which took effect July 1, 2025, per the Budget Reconciliation and Financing Act of 2025. The Central Region led contributions at $10,796,928, followed by the Capital Region at $6,513,870, Western at $4,349,937, Eastern at $3,618,113, and Southern at $1,597,526.
The tax increase from 9% to 12% directs the additional 3% to the state’s General Fund before other allocations, as required by the Cannabis Reform Act of 2023. An estimated $11.7 million from this period supports the General Fund overall, with specific distributions including $6,719,093 as the initial 3% share.
Allocations for the quarter break down as follows: $10,150,520 to the Maryland Cannabis Administration for operational and administrative needs; $3,502,366 (35% of quarterly revenues) to the Community Reinvestment and Repair Fund (CRRF) for community-based initiatives in areas disproportionately impacted by cannabis prohibition enforcement prior to July 1, 2022; $500,338 (5%) to Maryland counties based on their revenue contribution percentage; $500,338 (5%) to the Cannabis Public Health Fund to address health effects of adult-use legalization; and $500,338 (5%) to the Cannabis Business Assistance Fund through fiscal year 2028 for small, minority-owned, and women-owned businesses entering the industry. The net amount to the General Fund after required disbursements totals $5,003,380.
The Southern Region, encompassing Calvert, Charles, and St. Mary’s counties in Southern Maryland, generated $1,597,526 during the quarter. This contribution reflects local dispensary activity in communities such as Prince Frederick, La Plata, and Lexington Park, where adult-use sales support regional economic participation. The 5% county allocation distributes funds proportionally, with counties then required to share 50% with municipalities hosting dispensaries that generate revenue. This structure provides direct benefits to local governments in Southern Maryland for infrastructure, public services, or other priorities.
The CRRF distribution follows percentages set by the Office of Social Equity, targeting equity-focused programs. Previous quarters under the 9% rate showed lower totals, such as $18,371,784 from April through June 2025, with the Southern Region at $913,345. The tax hike and market growth contributed to the higher Q3 figure.
The Comptroller collects the tax from licensed dispensaries statewide, remitted through the online bFile system on monthly or quarterly schedules. Reports detail revenue by region to promote transparency in the adult-use market, legalized July 1, 2023, following voter approval in November 2022.
Quarterly reports remain available through the Comptroller’s office, allowing public review of trends. The Maryland Cannabis Administration provides resources on responsible use, including education on safe consumption and legal guidelines.
This revenue stream supports state fiscal needs while funding equity, health, and business development programs established under the Cannabis Reform Act of 2023. The act outlines the framework for licensing, taxation, and allocations to balance industry growth with community benefits.