The Maryland Comptroller’s Office reported $17.5 million in tax revenue from adult-use cannabis sales during the first quarter of 2025. The Central Region — including Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, and Howard counties — led all regions in collections, contributing nearly $8 million.

Maryland currently taxes adult-use cannabis at 9%, but beginning July 1, that rate will rise to 12% under legislation passed during the 2025 General Assembly session.

But only a small share — 5% — of this revenue is distributed to Maryland counties, based on local collections. Counties then split that funding with municipalities that host cannabis dispensaries.

This quarter, counties statewide received $536,500, while the State retained more than $5.3 million for the general fund and distributed $3.7 million to the Community Reinvestment and Repair Fund.

Despite local responsibilities for managing zoning, public safety, and health impacts related to cannabis businesses, local governments receive a mere 45 cents for every $100 in cannabis sales.

Other states, such as New York and Oregon, offer counties a fairer share through excise or sales taxes; however, Maryland’s counties remain strained as they manage these growing responsibilities.

As cannabis revenues grow with increased sales and a higher tax rate, the funding split remains unchanged, leaving counties with a modest slice of a rapidly expanding pie. MACo continues to advocate for a more balanced distribution that reflects the essential local responsibilities associated with cannabis regulation and its impacts.

Stay tuned to Conduit Street for more information.

Useful Links

Comptroller’s Office Issues Quarterly Report on Tax Revenue Collected from Adult Use Cannabis Sales in Maryland

Maryland Quarterly Cannabis Update