On March 31, Associate Policy Director Karrington Anderson testified before the Finance Committee in support of SB 1008 – Alcohol and Cannabis – Cannabinoid Beverages Off-Premises Sales Permit – Establishment with amendments.
This bill authorizes the sale of cannabinoid beverages through holders of alcoholic beverage licenses with off-sale privileges, contingent on approval from local licensing boards, and establishes a distribution framework through licensed wholesalers.
While MACo has no concern about the intent to establish a regulated market, MACo raises concerns about how the legislation allocates resources. Unlike Maryland’s existing cannabis framework—which provides at least some revenue sharing with local governments—SB 1008 directs all sales tax revenue to the State’s General Fund, leaving counties to manage enforcement, compliance, and community health impacts without dedicated funding.
MACo’s amendments seek to correct this imbalance by ensuring counties receive a fair share of revenues, aligning local responsibilities with the resources needed to support a safe and effective marketplace.
Without such a revenue stream, there is a clear imbalance between local responsibilities and available resources, highlighting the need for the General Assembly to recognize the essential role of local governments and establish a fairer revenue structure to support a safe and successful marketplace. Counties only get a small share of cannabis revenues (5% of the 9% tax, despite the State increasing the tax to 12%), a share that is trivially small compared to local governments in other states. In practice, this means that for a $100 cannabis purchase, the State collects $12 in tax, but the county retains only about 45 cents — often less once municipalities take their share. Local governments should either receive a fair share of revenue or be authorized to impose a local tax, similar to many other states.
MACo takes no issue with the main intent of SB 1008 to establish a
regulated market for cannabinoid beverages. However, the bill should be amended to ensure that counties receive a fair and consistent share of the revenues generated from these products, similar to existing cannabis sales. Further, the General Assembly should recognize the role of local governments needed to support a successful and safe marketplace, and create a fairer revenue structure overall to properly support these needs.
More on MACo’s Advocacy:
regulated market for cannabinoid beverages. However, the bill should be amended to ensure that counties receive a fair and consistent share of the revenues generated from these products, similar to existing cannabis sales. Further, the General Assembly should recognize the role of local governments needed to support a successful and safe marketplace, and create a fairer revenue structure overall to properly support these needs.