LEONARDTOWN, Md. — On July 10, 2025, the St. Mary’s County Board of Appeals will vote on the planned establishment of Southern Waves Dispensary, a cannabis dispensary, in California, Md. If approved, the dispensary will become only the second cannabis dispensary in St. Mary’s County, joining Story Cannabis in Mechanicsville, which was established in 2017.
Although recreational marijuana has been legal to sell and consume in Maryland since 2023, the vast majority of the state’s 103 cannabis dispensaries are in and around Baltimore and in the counties surrounding Washington, D.C. Currently, Calvert, Charles and St. Mary’s counties have only five total cannabis dispensaries.
The industry has seen significant growth since the legalization, especially in the adult-use market. In July 2023, Maryland reported $52 million in adult-use cannabis revenue, alongside $36 million in medical cannabis sales. By May 2025, monthly adult-use sales had surged to $80 million, while medical use declined to $22 million, reflecting broader consumer trends.
The cannabis industry is now one of the fastest-growing commercial industries in the state and is projected by the Maryland Cannabis Administration to hit $1.629 billion in annual sales by fiscal 2027. As of May 2025, annual sales had already hit $480 million.
The potential for a significant source of tax income has not gone unnoticed by the state government. On July 1, 2025, a 9% sales tax on cannabis was raised to 12% to capitalize on the rapidly growing industry. In 2024, Maryland collected $72 million in cannabis-related taxes. With the new rate and rising sales, that figure is projected to surpass $100 million in 2025 and could reach $120 million or more in the next fiscal year. If the projections for fiscal 2027 are accurate, that number could rise to $200 million.
The state of Maryland keeps about 50% of all revenue from the consumer tax on marijuana, while the rest is distributed to counties, municipalities and programs like the Cannabis Public Health Fund. Counties receive relatively little of that revenue — approximately 45 cents for every $100 in local cannabis sales. However, as both local and state governments are currently struggling with significant budget deficits, revenue from cannabis sales could be a lifeline for programs in need of funding.
The proposed Southern Waves location would replace the former Coldwell Banker office between Donut Connection and the Super 8 Motel on Three Notch Road. Publicly available information states that the buyer for the property is Checks and Balances LLC, a relatively new company registered in Maryland as of November 2023. State business records indicate the LLC has no other active operations, and all reference addresses listed in the application documents are not located in St. Mary’s County.
As of publication, Checks and Balances LLC has not responded to a request for comment.
Dispensaries in St. Mary’s County must adhere to specific zoning and public health requirements, including:
- A minimum 500-foot distance from schools, daycares and substance abuse treatment centers
- Measures to mitigate odors and other nuisances
The proposed location just meets those requirements, standing roughly 536 feet from the Creative Beginnings Preschool.
Although Southern Waves Dispensary would be the first legal cannabis dispensary in California, Md., the area is home to a significant number of smoke shops of various sizes that sell CBD products. There are at least five smoke shops within a five-minute drive of the proposed site that sell some range of CBD products.
Marijuana has had a mixed reception in St. Mary’s County since legalization in 2023, with health and safety concerns consistently expressed by county residents. In the aftermath of the referendum that legalized recreational marijuana, the St. Mary’s County government held a panel to discuss cannabis use and related concerns. In that panel, Sheriff Steven A. Hall noted that marijuana use could exacerbate mental illness, stating, “Adding a narcotic to the mix of choices that people have may exacerbate some of those mental illnesses, and I just don’t know to what cost.”
However, the response to the announcement of the potential opening of the Southern Waves Dispensary has largely reflected the view of a county in which a majority voted for legalization two years ago — with mostly positive responses or jokes about the potential link between the dispensary and the nearby Donut Connection.
Southern Waves Dispensary has been navigating the approval process since January 2025. It has already passed inspections and reviews by the fire board, health department, State Highway Administration and county planning staff.
The final decision now rests with the Board of Appeals, which will vote on the issue on July 10.
