LEONARDTOWN, Md. – The St. Mary’s County Board of Appeals is poised to make a significant decision for the local cannabis market, with a vote scheduled for July 10, 2025, regarding the proposed establishment of a new dispensary. The potential approval would pave the way for Southern Waves Dispensary to open its doors in California, Md., marking a key expansion in consumer access within the county.
Currently, St. Mary’s County is served by only one operational cannabis retail location, Story Cannabis in Mechanicsville, which commenced operations in 2017. The introduction of Southern Waves would double the number of licensed dispensaries available to residents and visitors.
Maryland’s Evolving Cannabis Landscape
This local decision comes against the backdrop of Maryland’s rapidly maturing cannabis industry. Recreational marijuana was officially legalized for sale and consumption across the state in 2023, a move that significantly broadened the market beyond medical patients. The transition has spurred considerable economic activity and revenue generation for the state.
Official data highlights the sector’s robust growth. According to recent figures, adult-use cannabis sales reached $80 million in May 2025. This represents a substantial increase compared to the $52 million in adult-use sales recorded in July 2023, shortly after recreational sales began. While adult-use sales have soared, the medical cannabis market has seen a shift, with sales totaling $22 million in May 2025, down from $36 million in July 2023.
The state’s regulatory body, the Maryland Cannabis Administration, has optimistic projections for the future of the market. Their forecasts indicate that total annual state sales are expected to climb to $1.629 billion by fiscal year 2027, reflecting continued demand and market expansion.
Taxation and Revenue Implications
The growing sales volume translates directly into increased tax revenue for Maryland. Effective July 1, 2025, the state implemented an increase in the cannabis sales tax rate, rising from 9% to 12%. This adjustment is anticipated to significantly boost state coffers.
In 2024, Maryland collected approximately $72 million in cannabis taxes. With the higher tax rate now in effect and projected market growth, state officials anticipate tax revenue will exceed $100 million in 2025.
The Board’s Role and Local Impact
The St. Mary’s County Board of Appeals in Leonardtown is responsible for reviewing and approving zoning and land use applications that comply with state regulations. Their vote on July 10 will determine if the proposed Southern Waves Dispensary meets the necessary local criteria for operation at its intended location in California, Md.
The potential approval of a second dispensary could have several local impacts, including increasing consumer convenience, fostering local job creation, and contributing to the county’s economic base through potential local taxes or fees, in addition to the state sales tax revenue shared back with localities under Maryland law.
The Board’s decision is a critical step in the local regulatory process for cannabis businesses. The meeting scheduled for July 10, 2025, is expected to draw attention from industry stakeholders, local residents, and those interested in the ongoing development of the cannabis market in St. Mary’s County and across Maryland.
