Arizona’s total tax revenue from legal marijuana sales is nearing $1 billion, with over $20 million generated in August.
According to data from the Arizona Department of Revenue, the state generated $20,778,911 in tax revenue from the licensed sale of nearly $90 million worth of marijuana and marijuana products. Of this, $12,799,070 came from the 16% recreational marijuana excise tax, $6,292,234 from the 5.6% transaction privilege tax on recreational marijuana, and $1,490,447 from the same 5.6% tax applied to medical marijuana sales, which are exempt from the 16% excise tax.
Arizona’s year-to-date total for marijuana taxes is now approximately $190 million. The all-time total is $948,116,657.
In Arizona, marijuana was legalized by voters during the November 2020 election. The law allows those 21 and older to buy and possess up to one ounce of marijuana and up to five grams of marijuana concentrates, which can be purchased at a licensed marijuana store.
Marijuana tax revenue is distributed as follows:
- 33% – Community College Districts.
- 31.4% – Local Law Enforcement and Fire Departments.
- 25.4% – Arizona Highway User Revenue Fund.
- 10% – Justice Reinvestment Fund (for public safety, public health, and drug treatment programs).
- 0.2% – Attorney General for enforcement costs.
