Maryland's cannabis market is on the rise, with tax revenues reaching $22.3 million in the second quarter of 2024, up 52% from the previous quarter.
This impressive growth reflects the expansion of the adult-use cannabis market, which was legalized last summer under the Marijuana Reform Act, which establishes a 9% tax rate on sales to be used to fund various state initiatives aimed at promoting equity and community development, BayNet reported.
According to Maryland Comptroller Brooke Lierman, the state's marijuana industry is more than just a revenue stream.
“The cannabis market continues to grow in Maryland, demonstrating its power to create new jobs, new investment and new opportunity, especially in communities that have been left behind and marginalized by economic change,” Lierman said.
Related article: Governor Wes Moore announces Maryland marijuana sales exceed $1.1 billion in first year of legalization
Distribution of cannabis tax revenue
The $22.3 million in cannabis tax revenue collected in the second quarter of 2024 will be distributed among several key funds.
The Community Reinvestment Repair Fund (CRRF), which was established to support areas affected by past cannabis prohibition, received $7.8 million, or 35% of the total.
“These revenue figures clearly demonstrate the potential of Maryland's cannabis industry to drive economic growth while prioritizing equity,” said Audrey Johnson, executive director of the Office of Social Equity.
In addition to the CRRF, revenues were allocated as follows:
Maryland counties received $1.1 million, the Cannabis Public Health Fund and the Cannabis Business Assistance Fund each received $1.1 million, and $11.2 million was directed to the state's general fund.
These allocations are intended to support public health, small business development and local economies across the state, ensuring the benefits of cannabis legalization are felt throughout Maryland.
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