Cannabis Shops Are Selling Like Crazy One Year After Legalization In Maryland, But Black Market Persists
More than a year after Maryland legalized recreational cannabis, the state’s illicit market remains active. The transition from medical-only to adult-use retailers, facilitated by a ballot referendum, was designed to curb illegal sales. Lawmakers crafted regulations and taxes based on successful models from other states, aiming to support new businesses while reducing black market activity.
Strategic Tax Policies
Despite the commercial success of licensed dispensaries, which have seen revenue and transaction numbers soar, the illegal market persists. Amanda Reiman, chief knowledge officer for New Frontier Data, a global cannabis industry analytics firm, told The Baltimore Banner: “Low taxes, easy access to retailers, and a tested, reasonably priced product can pull illicit cannabis customers over to a legal market.” Maryland’s 9% tax rate, among the nation’s lowest, and the planned proliferation of over 300 retail stores, support this strategy.
Timing Strategy
However, states like California and New York, which delayed setting up regulated markets, allowed …