MD Cannabis Sales Soar to $87.4M During First Month of Adult-Use Market

In July, collective adult-use and medical cannabis purchases reached $87.4 million — more than double the $42.7 million total for June, before the launch of adult-use retail sales, according to the Maryland Cannabis Administration (MCA).

As previously reported on Conduit Street, as of July 1, adult-use cannabis is legal under Maryland law. Nearly all existing medical dispensaries (approximately 100 locations statewide) have converted their licenses and can sell medical and adult-use cannabis products to adults 21+ with valid government identification.

As previously reported on Conduit Street, HB 556/SB 516 of 2023 imposes a sales and use tax on the sale of adult-use cannabis in Maryland. The tax rate is 9 percent of the purchase price of any product containing cannabis.

A mere five percent of state cannabis tax revenue goes to local governments. That translates to local governments receiving a mere 45 cents for a single purchase of $100 of cannabis- the smallest in the nation.

Municipalities will receive half of the local revenue share for transactions within municipal boundaries (counties will retain the other half on such transactions). In addition, 35 percent of the tax proceeds will go to the Community Reinvestment and Repair Fund, a new fund for local organizations that support marginalized communities.

There are nearly 100 existing medical dispensaries in Maryland, and as of July 1, almost all are licensed to sell adult-use cannabis. This fall, MCA will accept applications for an initial round of new grower, processor, and dispensary licenses, the first available exclusively to social equity applicants nationwide.

MCA will provide education, outreach, and technical assistance online, in person, and through attendance at several events this summer, with initial awards anticipated by January 1, 2024.

Key facts regarding the new law, per MCA:

  • Smoking cannabis is permitted only in private residences. Public smoking is prohibited indoors and outdoors, on public transit, moving vehicles, and on all federal property.
  • Driving under the influence of cannabis is illegal.
  • Purchase and possession limits for the adult-use market include 1.5 ounces of dried cannabis flower, 12 grams of concentrate (i.e., vapes), or 750 milligrams of THC (i.e., edible products). Products can be shared with other adults. A single household can grow up to two cannabis plants indoors and out of public view.
  • Dispensaries are permitted to sell dried cannabis flower (including joints), vapes, and other topical and consumable products with no more than 10 milligrams of THC per serving and 100 milligrams of THC per package.
  • A nine percent sales tax will be applied to adult-use sales.
  • The medical cannabis program will remain unchanged. Dispensaries must have patient-only hours or lines, medical products will not be subject to the sales tax, and certain highly concentrated products will only be available for certified patients.
  • Employers and landlords/property managers are permitted to retain more robust policies on cannabis use.

In preparation for adult-use cannabis, MCA developed and distributed point-of-sale toolkits with consumer education materials to all licensed dispensaries. According to MCA, this is the most comprehensive information in the country that has been provided to consumers at the inception of legal adult-use sales.

These materials can all be found for viewing and download here. MCA anticipates printing additional copies of consumer education materials to share with partners. If you are interested in receiving materials for distribution, please send a detailed request to

Additionally, MCA has developed eight:15 videos for social media and fact sheets on several topics that MCA encourages partners to share and post. In addition, public education videos and more information on the new law, consumption, and dosage guidance are available on the MCA website.

MCA also published the “Marylander’s Guide for Responsible Cannabis Consumption,” containing crucial public safety and public health information and materials.

Please visit for additional information.

Previous Conduit Street Coverage

Adult-Use Cannabis: New Guidance for MD Counties

County Public Safety Officials Prepare for Recreational Cannabis Launch This Saturday

MD Comptroller Issues Cannabis Tax Guidance

2023 End of Session Wrap-Up: Cannabis

At the MACo Summer Conference session, “Adult-Use Cannabis: Taxes, Zoning, and Safety – Oh My,” attendees will learn best practices for navigating the fast-changing political, social, and regulatory landscape of adult-use cannabis.

The 2023 MACo Summer Conference is August 16-19, 2023, at the Roland Powell Convention Center in Ocean City, Maryland.

Learn more about MACo’s Summer Conference: