Gross sales of hashish in Arizona have exceeded $1 billion this yr, based on knowledge from the state Division of Income. Whole marijuana gross sales eclipsed the billion-dollar mark in September, marking the third straight yr the state’s weed gross sales have reached the seven-digit milestone.
To date this yr, Arizona’s gross sales of adult-use hashish have totaled $797 million, whereas medical marijuana gross sales reached $267 million, bringing the entire for 2023 by way of September to $1.1 billion. The state’s total hashish quantity since leisure marijuana gross sales started in January 2021 has now reached $4 billion, with gross sales of adult-use hashish contributing $2.5 billion to the entire.
Arizona voters legalized the medical use of marijuana in Arizona in 2010 with the approval of Proposition 203, which obtained simply over half of the vote. The primary licensed medical marijuana dispensary within the state started serving sufferers on December 6, 2012.
Leisure marijuana was then legalized within the state with the passage of Proposition 207 in 2020. Referred to as the Good and Secure Act, the poll measure was accepted by 60% of voters. Regulated gross sales of leisure marijuana started on January 21, 2021, lower than three months after the poll measure succeeded on the polls.
Arizona Division of Income (ADOR) cannabis sales data from August and September of this yr present that medical marijuana accounted for about one-third of the state’s complete gross sales, according to a report from the Arizona Mirror. The ratio of medical marijuana gross sales to gross sales of adult-use hashish continues a development the state has seen during the last yr, resulting in the bottom complete recorded gross sales of medical marijuana ever.
Gross sales of medical marijuana in September have been slightly below $27 million, down from $28.7 million the earlier month. September’s determine marks the bottom month-to-month complete for medical hashish gross sales since regulated gross sales of adult-use hashish started practically three years in the past. The final time month-to-month medical marijuana gross sales topped $30 million was in June. Medical marijuana gross sales have steadily declined in Arizona for the reason that peak of $73.4 million in April 2021. Whole medical weed gross sales haven’t exceeded $40 million in a single month since June.
Gross sales of adult-use hashish totaled $85.8 million in August and simply over $80 million in September. Leisure hashish gross sales hit their highest month-to-month complete in March of this yr at $100 million. Gross sales of leisure pot have exceeded $80 million per thirty days since dropping under $90 million in Could. Since first reaching $80 million in March 2022, gross sales of adult-use hashish have solely failed to succeed in that stage twice—in Could 2022 at $79.3 million and June 2022 at $77.2 million.
Eivan Shahara, the CEO of Mint Hashish, a multistate operator that opened its sixth dispensary in Arizona final week, says that the state’s dip in hashish gross sales coincided with adjustments in the way in which customers are procuring.
“When it comes to shopper spending, we’re seeing hashish clients go to our dispensaries extra continuously with smaller basket sizes. Throughout the pandemic, we noticed clients go to much less continuously however with bigger basket sizes,” Shahara writes in an e mail to Excessive Instances. “We’re responding to this development by persevering with to supply day-of-the-week offers, replenish and save promotions, giveaways, and buy-one-get-one provides to drive further site visitors and gross sales at our places. We now have additionally responded by incorporating extra conveniences like on-line ordering and drive-thru decide up.”
Weed Taxes Generate Hundreds of thousands
Arizona levies a 16% tax on leisure marijuana gross sales along with roughly 6% in gross sales tax. Medical marijuana sufferers pay solely gross sales tax on their purchases of hashish. Native jurisdictions add further taxes of about 2% to leisure marijuana gross sales.
A couple of third of hashish tax income collected in Arizona is devoted to group school and provisional group school districts, whereas 31% is devoted to legislation enforcement, fireplace departments, fireplace districts and different emergency first responders. 1 / 4 of state marijuana taxes go to the Arizona Freeway Person Income Fund, whereas 10% is reserved for the justice reinvestment fund, which helps public well being companies, counseling, job coaching and different social companies for communities which were adversely affected and disproportionately impacted by practically a century of hashish prohibition.
To date for 2023, the state has collected $174.5 million in excise taxes on leisure marijuana. Throughout the 11 months of regulated gross sales in 2021, taxes on adult-use hashish generated $32.9 million for the state’s coffers. The whole spiked the next yr, with the excise tax on leisure weed leaping to $132.8 million. General, the excise tax has generated greater than $391 million in income for Arizona since regulated gross sales of adult-use hashish started.
Arizona collected $13.7 million in August and $12.8 million in September from taxes on leisure marijuana gross sales. To date in 2023, the excise tax on adult-use hashish has generated $174.5 million in income. Tax income on medical marijuana got here to $2.4 million in August and $2.2 million in September.