The Arizona Department of Revenue said the state has already made millions off of the taxes related to adult-use marijuana.
ARIZONA, USA — Editor’s note: The above video aired during a previous broadcast.
Arizona has seen $74,386,952 in marijuana tax revenue since businesses were approved to begin selling the drug recreationally in late January, the Arizona Department of Revenue said.
Two taxes, in addition to the general sales tax, have been placed on the sale of recreational marijuana since voters approved of Proposition 207 in the 2020 election, including:
- A transaction privilege tax (TPT), which is a tax on a vendor for the privilege of doing business in the state applied to a variety of other businesses, and
- An excise tax of 16% on retail sales.
The state has so far received $32,925,183 in excise tax and $16,514,225 in TPT, along with general sales on both recreational and medical marijuana, the department said.
The passing of Proposition 207 made the Arizona Department of Health Services responsible for regulating marijuana in the state, including licensing stores and production facilities.
As of early January, patrons over the age of 21 can purchase recreational marijuana products at state-licensed dispensaries.
Even with these high-profit margins, marijuana sellers and growers can’t get credit due to current federal laws in place. The drug is still considered a schedule one drug federally, which makes it harder for businesses to work with banks.
Marijuana-related businesses often run on a cash-only basis because of this disparity.
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Marijuana News in Arizona
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