diff --git a/pytest.ini b/pytest.ini
index b04a6ccf3..28cefdb3e 100644
--- a/pytest.ini
+++ b/pytest.ini
@@ -8,3 +8,7 @@ testpaths =
     tests/unit
     tests/integration
     tests/functional
+markers =
+    external: mark test as requiring an external location
+    python: mark test as running a python model
+    dlt: mark test as running a DLT model
\ No newline at end of file
diff --git a/tests/functional/adapter/basic/test_ensure_no_describe_extended.py b/tests/functional/adapter/basic/test_ensure_no_describe_extended.py
deleted file mode 100644
index 58d989c49..000000000
--- a/tests/functional/adapter/basic/test_ensure_no_describe_extended.py
+++ /dev/null
@@ -1,27 +0,0 @@
-import pytest
-
-from dbt.tests import util
-from tests.functional.adapter.basic import fixtures
-
-
-class TestEnsureNoDescribeExtended:
-    """Tests in this class exist to ensure we don't call describe extended unnecessarily.
-    This became a problem due to needing to discern tables from streaming tables, which is not
-    relevant on hive, but users on hive were having all of their tables describe extended-ed.
-    We only need to call describe extended if we are using a UC catalog and we can't determine the
-    type of the materialization."""
-
-    @pytest.fixture(scope="class")
-    def seeds(self):
-        return {"my_seed.csv": fixtures.basic_seed_csv}
-
-    @pytest.fixture(scope="class")
-    def models(self):
-        return {"my_model.sql": fixtures.basic_model_sql}
-
-    def test_ensure_no_describe_extended(self, project):
-        # Add some existing data to ensure we don't try to 'describe extended' it.
-        util.run_dbt(["seed"])
-
-        _, log_output = util.run_dbt_and_capture(["run"])
-        assert "describe extended" not in log_output
diff --git a/tests/functional/adapter/basic/test_incremental.py b/tests/functional/adapter/basic/test_incremental.py
index 73c99260e..8d630a0a9 100644
--- a/tests/functional/adapter/basic/test_incremental.py
+++ b/tests/functional/adapter/basic/test_incremental.py
@@ -24,6 +24,7 @@ class TestIncrementalDeltaNotSchemaChange(BaseIncrementalNotSchemaChange):
     pass
 
 
+@pytest.mark.external
 @pytest.mark.skip_profile("databricks_uc_cluster", "databricks_cluster")
 class TestIncrementalParquet(BaseIncremental):
     @pytest.fixture(scope="class")
@@ -50,6 +51,7 @@ def project_config_update(self):
         }
 
 
+@pytest.mark.external
 @pytest.mark.skip_profile("databricks_uc_cluster", "databricks_cluster")
 class TestIncrementalCSV(BaseIncremental):
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/incremental/test_incremental_clustering.py b/tests/functional/adapter/incremental/test_incremental_clustering.py
index 01885406a..cb867ade3 100644
--- a/tests/functional/adapter/incremental/test_incremental_clustering.py
+++ b/tests/functional/adapter/incremental/test_incremental_clustering.py
@@ -36,6 +36,7 @@ def test_changing_cluster_by(self, project):
                 assert False
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_cluster")
 class TestIncrementalPythonLiquidClustering:
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/incremental/test_incremental_strategies.py b/tests/functional/adapter/incremental/test_incremental_strategies.py
index e941adcf2..99ac3ff40 100644
--- a/tests/functional/adapter/incremental/test_incremental_strategies.py
+++ b/tests/functional/adapter/incremental/test_incremental_strategies.py
@@ -42,6 +42,7 @@ class TestAppendDelta(AppendBase):
     pass
 
 
+@pytest.mark.external
 @pytest.mark.skip_profile("databricks_uc_cluster", "databricks_cluster")
 class TestAppendParquet(AppendBase):
     @pytest.fixture(scope="class")
@@ -118,6 +119,7 @@ def test_incremental(self, project):
         util.check_relations_equal(project.adapter, ["overwrite_model", "upsert_expected"])
 
 
+@pytest.mark.external
 @pytest.mark.skip("This test is not repeatable due to external location")
 class TestInsertOverwriteParquet(InsertOverwriteBase):
     @pytest.fixture(scope="class")
@@ -132,6 +134,7 @@ def project_config_update(self):
         }
 
 
+@pytest.mark.external
 @pytest.mark.skip("This test is not repeatable due to external location")
 class TestInsertOverwriteWithPartitionsParquet(InsertOverwriteBase):
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/incremental/test_incremental_tags.py b/tests/functional/adapter/incremental/test_incremental_tags.py
index 730d9549f..b84e55e1f 100644
--- a/tests/functional/adapter/incremental/test_incremental_tags.py
+++ b/tests/functional/adapter/incremental/test_incremental_tags.py
@@ -28,6 +28,7 @@ def test_changing_tags(self, project):
         assert results_dict == {"c": "e", "d": "f"}
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_cluster")
 class TestIncrementalPythonTags:
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/incremental/test_incremental_tblproperties.py b/tests/functional/adapter/incremental/test_incremental_tblproperties.py
index 22625a9b6..2893067f7 100644
--- a/tests/functional/adapter/incremental/test_incremental_tblproperties.py
+++ b/tests/functional/adapter/incremental/test_incremental_tblproperties.py
@@ -27,6 +27,7 @@ def test_changing_tblproperties(self, project):
         assert results_dict["d"] == "f"
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_cluster")
 class TestIncrementalPythonTblproperties:
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/long_sessions/fixtures.py b/tests/functional/adapter/long_sessions/fixtures.py
deleted file mode 100644
index f1332e877..000000000
--- a/tests/functional/adapter/long_sessions/fixtures.py
+++ /dev/null
@@ -1,46 +0,0 @@
-source = """id,name,date
-1,Alice,2022-01-01
-2,Bob,2022-01-02
-"""
-
-target = """
-{{config(materialized='table')}}
-
-select * from {{ ref('source') }}
-"""
-
-target2 = """
-{{config(materialized='table', databricks_compute='alternate_warehouse')}}
-
-select * from {{ ref('source') }}
-"""
-
-targetseq1 = """
-{{config(materialized='table', databricks_compute='alternate_warehouse')}}
-
-select * from {{ ref('source') }}
-"""
-
-targetseq2 = """
-{{config(materialized='table')}}
-
-select * from {{ ref('targetseq1') }}
-"""
-
-targetseq3 = """
-{{config(materialized='table')}}
-
-select * from {{ ref('targetseq2') }}
-"""
-
-targetseq4 = """
-{{config(materialized='table')}}
-
-select * from {{ ref('targetseq3') }}
-"""
-
-targetseq5 = """
-{{config(materialized='table', databricks_compute='alternate_warehouse')}}
-
-select * from {{ ref('targetseq4') }}
-"""
diff --git a/tests/functional/adapter/long_sessions/test_long_sessions.py b/tests/functional/adapter/long_sessions/test_long_sessions.py
deleted file mode 100644
index 2f7e8065d..000000000
--- a/tests/functional/adapter/long_sessions/test_long_sessions.py
+++ /dev/null
@@ -1,101 +0,0 @@
-import os
-from unittest import mock
-
-import pytest
-from dbt.tests import util
-from tests.functional.adapter.long_sessions import fixtures
-
-with mock.patch.dict(
-    os.environ,
-    {
-        "DBT_DATABRICKS_LONG_SESSIONS": "true",
-        "DBT_DATABRICKS_CONNECTOR_LOG_LEVEL": "DEBUG",
-    },
-):
-    import dbt.adapters.databricks.connections  # noqa
-
-
-class TestLongSessionsBase:
-    args_formatter = ""
-
-    @pytest.fixture(scope="class")
-    def seeds(self):
-        return {
-            "source.csv": fixtures.source,
-        }
-
-    @pytest.fixture(scope="class")
-    def models(self):
-        m = {}
-        for i in range(5):
-            m[f"target{i}.sql"] = fixtures.target
-
-        return m
-
-    def test_long_sessions(self, project):
-        _, log = util.run_dbt_and_capture(["--debug", "seed"])
-        open_count = log.count("request: OpenSession")
-        assert open_count == 2
-
-        _, log = util.run_dbt_and_capture(["--debug", "run"])
-        open_count = log.count("request: OpenSession")
-        assert open_count == 2
-
-
-class TestLongSessionsMultipleThreads(TestLongSessionsBase):
-    def test_long_sessions(self, project):
-        util.run_dbt_and_capture(["seed"])
-
-        for n_threads in [1, 2, 3]:
-            _, log = util.run_dbt_and_capture(["--debug", "run", "--threads", f"{n_threads}"])
-            open_count = log.count("request: OpenSession")
-            assert open_count == (n_threads + 1)
-
-
-class TestLongSessionsMultipleCompute:
-    args_formatter = ""
-
-    @pytest.fixture(scope="class")
-    def seeds(self):
-        return {
-            "source.csv": fixtures.source,
-        }
-
-    @pytest.fixture(scope="class")
-    def models(self):
-        m = {}
-        for i in range(2):
-            m[f"target{i}.sql"] = fixtures.target
-
-        m["target_alt.sql"] = fixtures.target2
-
-        return m
-
-    def test_long_sessions(self, project):
-        util.run_dbt_and_capture(["--debug", "seed", "--target", "alternate_warehouse"])
-
-        _, log = util.run_dbt_and_capture(["--debug", "run", "--target", "alternate_warehouse"])
-        open_count = log.count("request: OpenSession")
-        assert open_count == 3
-
-
-class TestLongSessionsIdleCleanup(TestLongSessionsMultipleCompute):
-    args_formatter = ""
-
-    @pytest.fixture(scope="class")
-    def models(self):
-        m = {
-            "targetseq1.sql": fixtures.targetseq1,
-            "targetseq2.sql": fixtures.targetseq2,
-            "targetseq3.sql": fixtures.targetseq3,
-            "targetseq4.sql": fixtures.targetseq4,
-            "targetseq5.sql": fixtures.targetseq5,
-        }
-        return m
-
-    def test_long_sessions(self, project):
-        util.run_dbt(["--debug", "seed", "--target", "idle_sessions"])
-
-        _, log = util.run_dbt_and_capture(["--debug", "run", "--target", "idle_sessions"])
-        idle_count = log.count("Closing for idleness") / 2
-        assert idle_count > 0
diff --git a/tests/functional/adapter/materialized_view_tests/test_basic.py b/tests/functional/adapter/materialized_view_tests/test_basic.py
index 22b74ac09..08c49bba8 100644
--- a/tests/functional/adapter/materialized_view_tests/test_basic.py
+++ b/tests/functional/adapter/materialized_view_tests/test_basic.py
@@ -27,6 +27,7 @@ def query_relation_type(project, relation: BaseRelation) -> Optional[str]:
         return fixtures.query_relation_type(project, relation)
 
 
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestMaterializedViews(TestMaterializedViewsMixin, MaterializedViewBasic):
     def test_table_replaces_materialized_view(self, project, my_materialized_view):
diff --git a/tests/functional/adapter/materialized_view_tests/test_changes.py b/tests/functional/adapter/materialized_view_tests/test_changes.py
index a113d2fb7..9a123638a 100644
--- a/tests/functional/adapter/materialized_view_tests/test_changes.py
+++ b/tests/functional/adapter/materialized_view_tests/test_changes.py
@@ -80,6 +80,7 @@ def query_relation_type(project, relation: BaseRelation) -> Optional[str]:
         return fixtures.query_relation_type(project, relation)
 
 
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestMaterializedViewApplyChanges(
     MaterializedViewChangesMixin, MaterializedViewChangesApplyMixin
@@ -87,6 +88,7 @@ class TestMaterializedViewApplyChanges(
     pass
 
 
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestMaterializedViewContinueOnChanges(
     MaterializedViewChangesMixin, MaterializedViewChangesContinueMixin
@@ -94,6 +96,7 @@ class TestMaterializedViewContinueOnChanges(
     pass
 
 
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestMaterializedViewFailOnChanges(
     MaterializedViewChangesMixin, MaterializedViewChangesFailMixin
diff --git a/tests/functional/adapter/persist_docs/test_persist_docs.py b/tests/functional/adapter/persist_docs/test_persist_docs.py
index cbc7d0a12..2544b1015 100644
--- a/tests/functional/adapter/persist_docs/test_persist_docs.py
+++ b/tests/functional/adapter/persist_docs/test_persist_docs.py
@@ -245,6 +245,7 @@ def test_quoted_column_comments(self, adapter, table_relation):
                 break
 
 
+@pytest.mark.external
 # Skipping UC Cluster to ensure these tests don't fail due to overlapping resources
 @pytest.mark.skip_profile("databricks_uc_cluster")
 class TestPersistDocsWithSeeds:
diff --git a/tests/functional/adapter/python_model/test_python_model.py b/tests/functional/adapter/python_model/test_python_model.py
index a6e93a592..ad7541b24 100644
--- a/tests/functional/adapter/python_model/test_python_model.py
+++ b/tests/functional/adapter/python_model/test_python_model.py
@@ -9,16 +9,19 @@
 from tests.functional.adapter.python_model import fixtures as override_fixtures
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_uc_sql_endpoint")
 class TestPythonModel(BasePythonModelTests):
     pass
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_uc_sql_endpoint")
 class TestPythonIncrementalModel(BasePythonIncrementalTests):
     pass
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_uc_sql_endpoint")
 class TestChangingSchema:
     @pytest.fixture(scope="class")
@@ -42,6 +45,7 @@ def test_changing_schema_with_log_validation(self, project, logs_dir):
             assert "Execution status: OK in" in log
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_uc_sql_endpoint")
 class TestChangingSchemaIncremental:
     @pytest.fixture(scope="class")
@@ -60,6 +64,7 @@ def test_changing_schema_via_incremental(self, project):
         util.check_relations_equal(project.adapter, ["incremental_model", "expected_incremental"])
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestSpecifyingHttpPath(BasePythonModelTests):
     @pytest.fixture(scope="class")
@@ -73,6 +78,8 @@ def models(self):
         }
 
 
+@pytest.mark.python
+@pytest.mark.external
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_sql_endpoint")
 class TestComplexConfig:
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/python_model/test_spark.py b/tests/functional/adapter/python_model/test_spark.py
index 222fb60a3..876098973 100644
--- a/tests/functional/adapter/python_model/test_spark.py
+++ b/tests/functional/adapter/python_model/test_spark.py
@@ -7,6 +7,7 @@
 )
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_uc_sql_endpoint")
 class TestPySpark(BasePySparkTests):
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/simple_copy/test_simple_copy.py b/tests/functional/adapter/simple_copy/test_simple_copy.py
index a7328d991..feac39bd5 100644
--- a/tests/functional/adapter/simple_copy/test_simple_copy.py
+++ b/tests/functional/adapter/simple_copy/test_simple_copy.py
@@ -5,6 +5,7 @@
 
 
 # Tests with materialized_views, which only works for SQL Warehouse
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestSimpleCopyBase(SimpleCopyBase):
     pass
diff --git a/tests/functional/adapter/streaming_tables/test_st_basic.py b/tests/functional/adapter/streaming_tables/test_st_basic.py
index cf26ba854..ad5d8a253 100644
--- a/tests/functional/adapter/streaming_tables/test_st_basic.py
+++ b/tests/functional/adapter/streaming_tables/test_st_basic.py
@@ -12,6 +12,7 @@
 from tests.functional.adapter.streaming_tables import fixtures
 
 
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestStreamingTablesBasic:
     @staticmethod
diff --git a/tests/functional/adapter/streaming_tables/test_st_changes.py b/tests/functional/adapter/streaming_tables/test_st_changes.py
index 3791bd698..c0495f359 100644
--- a/tests/functional/adapter/streaming_tables/test_st_changes.py
+++ b/tests/functional/adapter/streaming_tables/test_st_changes.py
@@ -123,6 +123,7 @@ def test_full_refresh_occurs_with_changes(self, project, my_streaming_table):
         util.assert_message_in_logs(f"Applying REPLACE to: {my_streaming_table}", logs)
 
 
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestStreamingTableChangesApply(StreamingTableChanges):
     @pytest.fixture(scope="class")
@@ -153,6 +154,7 @@ def test_change_is_applied_via_replace(self, project, my_streaming_table):
         util.assert_message_in_logs(f"Applying REPLACE to: {my_streaming_table}", logs)
 
 
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestStreamingTableChangesContinue(StreamingTableChanges):
     @pytest.fixture(scope="class")
@@ -193,6 +195,7 @@ def test_change_is_not_applied_via_replace(self, project, my_streaming_table):
         util.assert_message_in_logs(f"Applying REPLACE to: {my_streaming_table}", logs, False)
 
 
+@pytest.mark.dlt
 @pytest.mark.skip_profile("databricks_cluster", "databricks_uc_cluster")
 class TestStreamingTableChangesFail(StreamingTableChanges):
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/tags/test_databricks_tags.py b/tests/functional/adapter/tags/test_databricks_tags.py
index b52c7caed..2221a11b8 100644
--- a/tests/functional/adapter/tags/test_databricks_tags.py
+++ b/tests/functional/adapter/tags/test_databricks_tags.py
@@ -36,6 +36,7 @@ def models(self):
         return {"tags.sql": fixtures.tags_sql.replace("table", "incremental")}
 
 
+@pytest.mark.python
 @pytest.mark.skip_profile("databricks_cluster")
 class TestPythonTags(TestTags):
     @pytest.fixture(scope="class")
diff --git a/tests/profiles.py b/tests/profiles.py
index 525d51c6a..c024e12c7 100644
--- a/tests/profiles.py
+++ b/tests/profiles.py
@@ -44,10 +44,6 @@ def _build_databricks_cluster_target(
             "_port": os.getenv("DBT_DATABRICKS_PORT"),
             "_tls_no_verify": True,
         }
-        if os.getenv("DBT_DATABRICKS_CA_PATH"):
-            profile["connection_parameters"]["_tls_trusted_ca_file"] = os.getenv(
-                "DBT_DATABRICKS_CA_PATH"
-            )
     return profile