Arizona’s marijuana market continues to thrive, with total sales in 2024 reaching an impressive $1,212,271,008.
The year concluded with $91 million in sales recorded for December, while March stood out as the top month, bringing in $127 million, according to the research firm Headset. The $1.2 billion in marijuana sales in 2024 resulted in nearly $300 million in tax revenue for the state, according to the Arizona Department of Revenue.
Recreational marijuana sales in Arizona began after voters approved Proposition 207 in November 2020. This measure legalized marijuana for those aged 21 and older, allowing the purchase of up to one ounce of marijuana and up to five grams of concentrates from licensed marijuana retail outlets and dispensaries.
Revenue generated from marijuana sales has significantly contributed to state programs. Arizona allocates its marijuana tax revenue as follows:
- 33% to Community College Districts
- 31.4% to Local Law Enforcement and Fire Departments
- 25.4% to the Arizona Highway User Revenue Fund
- 10% to the Justice Reinvestment Fund, supporting public safety, health, and drug treatment initiatives
- 0.2% to the Attorney General’s office for enforcement-related expenses
