Chocolate City Wellness fourth dispensary to face closure, Maryland reports $18.4M in Q2 cannabis taxes

Chocolate City Wellness, a popular cannabis shop that transitioned into a licensed dispensary earlier this year, was raided and closed by MPD and DEA on Sept. 10. Two people were arrested, and products including cannabis, vapes, edibles, and mushroom pills were seized. The Alcoholic Beverage and Cannabis Board has not yet released a statement. Chocolate City Wellness is the fourth licensed dispensary to be shut down for violations since April.

  • Don’t miss the ABC Board meeting, Sept. 17, 2025: watch, agenda.
  • Sept. 10, 2025 disposition.
  • Granny Za’s is the first transitioned store to announce it is temporarily closing. “We have not found a sustainable way to continue operating without impacting the level of service our customers deserve.”

Maryland nets $18.4M in cannabis tax revenue for Q2 2025

Maryland collected $18.4 million in cannabis sales tax revenue between April and June 2025, with the Central Region, including Baltimore City and Anne Arundel County, contributing the largest share. At the time, adult-use cannabis was taxed at 9%, but that rate increased to 12% on July 1 under the state’s Budget Reconciliation and Financing Act to further support the General Fund. Of the Q2 revenue, nearly $9.8 million went to the Maryland Cannabis Administration, while the remainder was distributed to community reinvestment, public health initiatives, business assistance, local governments, and the state’s General Fund.

  • The Maryland Office of Social Equity will host a CRRF Virtual Townhall on Sept. 17 at 11 A.M. to highlight key insights from the 2024 Community Reinvestment and Repair Fund Report.
  • An appellate court in Maryland ruled that delta-8 and delta-10 THC products are illegal in the state, stating that they have “always been illegal,” despite previously lax enforcement.

ICYMI: D.C. Board denies Ward 5 protest, Maryland workers rally, and Virginia’s legal market hangs in the balance

East Coast Roundup

New York agreed to a temporary court order blocking changes to how cannabis dispensary distances from schools and houses of worship are measured. State leaders plan to amend the law to let affected businesses remain at their licensed locations.

The 2nd U.S. Circuit Court of Appeals ruled that New York’s cannabis licensing system, which gives priority to in-state applicants with prior marijuana convictions, violates the Dormant Commerce Clause. The decision highlights that state programs favoring local applicants over out-of-state applicants may be unconstitutional, even in the legal cannabis market…

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