Maryland House Committee Advances Bill to Exempt Certain Cannabis Transactions from State Sales Tax

LOS ANGELES-  The Maryland House Ways and Means Committee approved House Bill 619, legislation designed to exempt specific cannabis-related transactions from the state’s sales and use tax. The bill, introduced on January 23, 2025, seeks to expand existing tax exemptions to include sales between licensed cannabis businesses and registered cannabis nurseries.

Currently, Maryland imposes a 9% sales and use tax on retail sales of adult-use cannabis and cannabis products, a policy that commenced on July 1, 2023, following the legalization of adult-use cannabis.

While medical cannabis and transactions between licensed cannabis businesses are already exempt from this tax, House Bill 619 aims to extend the exemption to encompass sales involving registered cannabis nurseries.

Proponents of the bill argue that reducing tax burdens on transactions between cultivators and nurseries could bolster Maryland’s cannabis industry by lowering operational costs and promoting the availability of diverse, high-quality cannabis strains. This legislative move is anticipated to encourage more nurseries to register, thereby fostering a more competitive and sustainable market.

If enacted, the tax exemption outlined in House Bill 619 would take effect on July 1, 2025. The bill’s progression reflects Maryland’s ongoing efforts to refine its cannabis regulatory framework in response to the evolving landscape of cannabis legalization and commerce.