The Maryland Association of Counties (MACo) called on Apr. 2 for the General Assembly to ensure that counties receive a greater share of revenue from the sale of cannabinoid beverages, following testimony before the Finance Committee in support of Senate Bill 1008.
The issue centers on how tax revenue from regulated cannabinoid beverage sales is distributed. While MACo supports establishing a regulated market, it said that SB 1008 would direct all sales tax proceeds to the State’s General Fund and not provide dedicated funding for counties, which are responsible for enforcement and managing community health impacts.
According to MACo, under current law, counties only receive about five percent of cannabis tax revenues—a small portion compared to what local governments receive in other states. For example, on a $100 purchase taxed at twelve percent by the state, a county may retain only about forty-five cents after municipalities take their share. MACo said this creates an imbalance between local responsibilities and available resources.
In testimony before lawmakers, Associate Policy Director Karrington Anderson said: “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.”
MACo proposed amendments that would either increase county allocations or allow them authority to impose their own local taxes on such products as seen in other states.
The association encouraged continued attention during this legislative session through its Legislative Tracking Database and Conduit Street blog as discussions over fair revenue sharing continue.
