Maryland Comptroller’s Office Corrects Clerical Error in Quarterly Cannabis Tax Report

The Office of the Comptroller has issued an updated quarterly report on cannabis taxes after identifying a clerical error in its data. This correction comes after the initial report mistakenly transposed tax collections for two regions, leading to misleading figures about regional sales.

Background and Initial Report

Last week, Comptroller Brooke Lierman (D) released the third quarterly report on recreational cannabis tax collections, detailing figures for five regions of Maryland for the first three months of the year. However, a clerical error caused the tax collections for the Capital and Central regions to be switched, creating the appearance of significant and unexplained fluctuations in the data. Despite this error, overall recreational cannabis sales tax collections grew by a modest 0.7 percent.

Discovery and Correction of the Error

The Maryland Cannabis Administration and the comptroller’s office were initially unable to explain the regional discrepancies. Officials from the Maryland Cannabis Administration noted on Monday that their tracking showed no unusual changes in sales patterns. Following an inquiry from Maryland Matters, the comptroller’s office reviewed the report and discovered the clerical mistake. On Tuesday, a spokesperson confirmed the error and updated the quarterly report, now available on the agency’s website.

Revised Figures and Regional Analysis

The corrected figures reveal that over the last two quarters of 2023, the Central Region, with its 47 licensed retail shops, remitted the highest amount of sales taxes to the comptroller’s office. The Capital Region, which has 28 retail shops, was second in tax contributions during this period. The original report had incorrectly swapped these data points, leading to confusion.

Impact on Overall Tax Revenue

Despite the initial reporting error, the overall tax revenue collected from January to March 2024 remains unchanged at $14.7 million. Maryland imposes a 9 percent tax on retail sales of recreational cannabis. The correction in the report clarifies the distribution of this revenue across the regions but does not affect the total amount collected.

The prompt correction by the Office of the Comptroller ensures accurate representation of regional cannabis tax collections and maintains transparency in reporting. This update underscores the importance of diligent data verification processes to prevent and rectify clerical errors.

As Maryland continues to monitor and report on cannabis sales, the state remains committed to providing clear and accurate financial data to the public and stakeholders.