Bill > HB619

This bill expands the existing sales and use tax exemption for cannabis-related transactions in Maryland by adding a third category of tax-exempt sales. Specifically, the bill will now exempt sales of cannabis between licensed cannabis businesses and registered cannabis nurseries from sales and use tax, in addition to the previously existing exemptions for medical cannabis sales and sales between licensed cannabis businesses. The term "cannabis" refers to the regulated marijuana industry, and the exemption applies to transactions under Title 36 of the Alcoholic Beverages and Cannabis Article, which governs the legal cannabis market in Maryland. The tax exemption is designed to reduce the financial burden on cannabis businesses by eliminating sales tax on certain inter-business transfers, potentially helping to keep product costs lower. The bill is set to take effect on July 1, 2025, providing businesses with advance notice of the tax policy change.

Budget and Finance

Ways and Means (H)

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0619?ys=2025RS