Maryland Marijuana Business

  1. Maryland Cannabis
  2. Maryland Marijuana Business

Interested in starting a Cannabis business in Maryland?

What is the Demand for Marijuana in Maryland?

Medical marijuana has been legalized in Maryland since the authorization of Natalie M. LaPrade Maryland Medical Cannabis Commission by the General Assembly in 2017. Medical marijuana dispensaries opened their facilities on December 1, 2017. According to MMCC Annual Report for 2021, its fourth year in operation, it has been able to have tremendous growth and development in its qualified entities, such as its patients, growers, licensed businesses, and retail businesses.

The number of certified patients grew from 11,489 in 2017 to 106,758 patients in July 2020. There were 54,643 patients in 2018 and 93,265 patients in 2019. The data showed a 375% year-on-year registered patient increase from 2017 to 2018 and a 71% increase in 2019. Between 2017 when MMCC became operational, and July 2020, over 139,000 patients were registered.

From MMCC records, as of December 2020, the total dispensary sales were $44,877,607, while as of December 2021, the total dispensary sales were $46,385,273.31, which is a 6% increase. But its highest sales of $48,116,446.00 were in March 2021. As of January 2022, the total dispensary sales were $44,745,249.71, while as of March 2022, the sales increased to $46,530,203.95. March recorded the highest sales in the year and by December 2022, total dispensary sales figure was $40,990,675. Furthermore, the generated income (total) from interest/fines, licensing fees, patient ID card fees and agent ID card fees in 2019, 2020 & 2021 could be estimated to be $10,371,437, $10,867,624, and $11,785,235, respectively.

According to House Bill 1, if Maryland voters approve Question 4 in the November 2022 ballot, recreational marijuana for adults will become legal in Maryland from July 1, 2023. This will significantly affect the economy of Maryland, and the state will tax adult-use marijuana.

How is Marijuana Taxed in Maryland?

Adult use of marijuana for recreational purposes is not allowed in Maryland; therefore, there is no tax for it. Likewise, though medical marijuana is legal, Maryland does not receive tax from it. Both sales and use tax do not apply to medical marijuana in Maryland.

What is the Agency Taxing Marijuana Business in Maryland?

The Comptroller of Maryland is the agency responsible for collecting taxes in Maryland. However, medical marijuana is not taxed in the state, and recreational marijuana is still illegal.

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