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Nearly $1.3 million of cannabis tax revenue may soon be put to good use.
On June 11, The Charles County commissioners began the process to be able to use cannabis tax revenue, which currently cannot be spent, by introducing an amendment to the county code.
Charles County has two dispensaries — one in White Plains and one in Waldorf.
Under the Cannabis Reform Act of 2023, Maryland imposes a 9% sales tax on adult-use cannabis.
According to state law, 5% of quarterly taxes collected in each county is distributed to that county.
In addition, 35% of the statewide tax revenues are recorded into the state’s Community Reinvestment and Repair Fund and provided to local governments, according to a presentation given to the Charles commissioners.
The purpose of the Community Reinvestment and Repair Fund is to provide resources to support communities disproportionately affected by prior cannabis prohibition. The fund cannot be used for law enforcement agencies or activities or funding for pre-existing local government programs, the presentation said.
Commissioner President Reuben B. Collins II (D) asked if there was going to be a more clear cut definition of “law enforcement” because he believed that there were programs of value like re-entry programs.
Assistant Deputy County Attorney Danielle Mitchell informed Collins that state law already says that the funds cannot be used for “law enforcement agencies or activities.”
County Attorney Wes Adams said, “What I think the intent is to not allow this money to supplant funding that you would otherwise give to the sheriff’s department … We do have a little bit of a preemption issue because this is a state law and it has literally directed us what to do.”
“I think you’re going to be in a sticky spot if you’re transferring funds to the sheriff’s office,” Mitchell said. “What they’re telling you that you should be doing is funding community-based initiatives.”
It was reported to the commissioners that as of May 31, Charles County has received $1.3 million through the state’s first three quarterly distributions on taxes collected from adult-use cannabis sales. The $1.3 million is currently tied up because of the lack of a county code amendment dictating how it can be spent.
“I think part of the reason you’re hearing the excitement is because there’s going to be funding challenges, and some of the programs that this would fund tend to be the first ones on the chopping block, when it comes to the budget, because you don’t have the money,” Commissioner Gilbert “BJ” Bowling (D) said.
Adams brought the commissioners back on track for the introduction with a quip, saying, “I caution you from getting too far into the weeds on this particular matter, and staying with the introduction of the bill.”
The commissioners unanimously approved a motion to introduce the legislation and scheduled a public hearing for July 9 at 6 p.m.
Community members will be provided information and be asked for their input, which will be followed by county staff delivering an analysis on possible uses of the funds using equity analysis tools and the community sentiment.
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