Arizona Recreational Cannabis Sales Reach $85.4M Despite Medical Marijuana Sales Drooping

Arizona voters approved recreational marijuana in 2020 with the passage of Proposition 207, also known as the “Smart and Safe Arizona Act.” The medical marijuana market began in 2012, following the passage of the Arizona Medical Marijuana Law in 2010.

How Are Arizona's Cannabis Sales Doing?

According to the Arizona Department of Revenue (ADOR), adult-use cannabis sales reached a new high in October 2022, with more than $85.4 million in estimated sales, $5 million above the $80.4 million from September sales. Additionally, August sales came in at just under $78 million.

Overall, recreational sales have rebounded from a low of $68.5 million in January 2022, the lowest month of the year. September and October mark the third and fourth time in 2022 that adult marijuana sales exceeded $80 million, according to ADOR's recent report. In addition, the recreational cannabis market totaled more than $2.6 billion in sales.

By contrast, the report showed that in October 2022, medical marijuana sales at $31.4 million, more than $1 million less than the September sales of $32.5 million. Also, it revised initial September sales estimates up from the previous report of $30.9 million.

The medical cannabis market would be outstripped by recreational sales in the wake of legalization, reported a local news outlet.

How About Cannabis Taxes?

Tax revenue collected through October totals $13.6 million from medical sales and $22.5 million from recreational sales. Moreover, "for adult use marijuana, there is a transaction privilege tax (TPT) rate and an excise tax (16%) on the retail sales," per the report.

In related news, federal sentencing data reported that Arizona could be among the states that benefit most from President Joe Biden's pardons of more than 6,500 people who were convicted in federal court of simple marijuana possession charges.

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Image by El Planteo

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisGovernmentNewsRegulationsMarketsGeneralArizona Department of RevenueCannabis Sales ArizonaPresident Joe Bidenrecreational cannabis sales
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis rescheduling seems to be right around the corner

Want to understand what this means for the future of the industry? Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.