# Tax - General (GTG)

## Title 2. Administration by Comptroller

### Subtitle 13. Sales and Use Tax Revenue Distribution

#### Section 2-1301

From the sales and use tax revenue, the Comptroller shall distribute the amount necessary to pay refunds relating to the sales and use tax to a refund account.

#### Section 2-1302

After making the distribution required under Sec. 2-1301 of this subtitle, from the remaining sales and use tax revenue, the Comptroller shall distribute the amount necessary to administer the sales and use tax laws to an administrative cost account.

#### Section 2-1302.1

After making the distributions required under Sec.Sec. 2-1301 and 2-1302 of this subtitle:

(1) of the sales and use tax collected under Sec. 11-104(c) and (c-1) of this article on short-term vehicle rentals and peer-to-peer car sharing, the Comptroller shall distribute:

  (i) 45% to the Transportation Trust Fund established under Sec. 3-216 of the Transportation Article; and

  (ii) the remainder to the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund; and

(2) the Comptroller shall distribute to the Transportation Trust Fund established under Sec. 3-216 of the Transportation Article the sales and use tax collected that is attributable to the sale of electricity:

  (i) at an electric vehicle charging station; or

  (ii) used to charge an electric vehicle and is not sold under a residential or domestic rate schedule on file with the Public Service Commission.

#### Section 2-1302.2

After making the distributions required under Sec.Sec. 2-1301 through 2-1302.1 of this subtitle, of the sales and use tax collected under Sec. 11-104(k) of this article from the sale of cannabis, as defined in Sec. 1-101 of the Alcoholic Beverages and Cannabis Article, the Comptroller quarterly shall distribute:

(1) 75% of the revenues as follows:

  (i) to the Cannabis Regulation and Enforcement Fund, established under Sec. 36-206 of the Alcoholic Beverages and Cannabis Article, an amount necessary to defray the entire cost of the operations and administrative expenses of the Maryland Cannabis Administration established under Title 36 of the Alcoholic Beverages and Cannabis Article;

  (ii) to the Department of Social and Economic Mobility Special Fund, established under Sec. 9-4107 of the State Government Article, an amount necessary to defray the operations and administrative expenses of the Office of Social Equity within the Department of Social and Economic Mobility;

  (iii) after making the distribution required under items (i) and (ii) of this item:

    (1) 35% to the Community Reinvestment and Repair Fund under Sec. 1-322 of the Alcoholic Beverages and Cannabis Article for fiscal years 2024 through 2033;

    (2) 5% to counties, which shall be allocated to each county based on the percentage of revenue collected from that county, except that a county shall distribute to a municipality located in the county 50% of the allocation received under this item that is attributable to the sales and use tax revenue generated by a dispensary located in that municipality;

    (3) 5% to the Cannabis Public Health Fund established under Sec. 13-4505 of the Health - General Article; and

    (4) for fiscal years 2024 through 2028, 5% to the Cannabis Business Assistance Fund established under Sec. 5-1901 of the Economic Development Article; and

  (iv) any balance remaining after the distributions required under items (i), (ii), and (iii) of this item to the General Fund of the State; and

(2) 25% of the revenue to the General Fund of the State.

#### Section 2-1302.3

After making the distributions required under Sec.Sec. 2-1301 through 2-1302.2 of this subtitle, the Comptroller shall distribute the sales and use tax revenue that is attributable to the purchase of a racehorse following a claiming race to the Racing and Community Development Facilities Fund established under Sec. 10-657.3 of the Economic Development Article.

#### Section 2-1302.4

After making the distributions required under Sec.Sec. 2-1301 through 2-1302.2 of this subtitle, of the sales and use tax collected from the sale of electronic smoking devices, as defined in Sec. 11-104(j) of this article, the Comptroller shall distribute the revenue attributable to a tax rate of 8% to the Blueprint for Maryland's Future Fund established under Sec. 5-206 of the Education Article.

#### Section 2-1302.5

After making the distributions required under Sec.Sec. 2-1301 through 2-1302.4 of this subtitle, of the sales and use tax collected under Sec. 11-104(l) of this article, the Comptroller shall distribute the revenue to the General Fund of the State.

#### Section 2-1303

After making the distributions required under Sec.Sec. 2-1301 through 2-1302.5 of this subtitle, the Comptroller shall pay:

(1) revenues from the hotel surcharge into the Dorchester County Economic Development Fund established under Sec. 10-130 of the Economic Development Article;

(2) to the Blueprint for Maryland's Future Fund established under Sec. 5-206 of the Education Article, the following percentage of the remaining sales and use tax revenues:

  (i) for fiscal year 2023, 9.2%;

  (ii) for fiscal year 2024, 11.0%;

  (iii) for fiscal year 2025, 11.3%;

  (iv) for fiscal year 2026, 11.7%; and

  (v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and

(3) the remaining sales and use tax revenue into the General Fund of the State.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)