Adult-use cannabis sales in Maryland generated more than $18 million in tax revenue during the second quarter of 2025. Yet counties, which shoulder the brunt of zoning, public safety, and health responsibilities tied to cannabis businesses, saw only a fraction of those dollars flow back into local budgets.
Maryland taxes adult-use cannabis at 9%, rising to 12% on July 1 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.
In practice, this means that for a $100 cannabis purchase, the State collects $12 in tax, but the county retains only about 60 cents — often less once municipalities take their share.
According to the Comptroller of Maryland, in the second quarter, the State directed $4.29 million from cannabis sales to the general fund and $3.0 million to the Community Reinvestment and Repair Fund. Counties, by contrast, received just $429,085, and they must split even that amount with municipalities that host dispensaries.
Click here to read the rest of the article written by Kevin Kinnally over at Conduit Street
