Arizona Adults Spent $58 Million On Recreational Marijuana In October

By Jim Small, Arizona Mirror

Marijuana sales in Arizona hit record highs in October, with nearly $58 million in estimated sales of recreational cannabis for the month, according to state tax officials.

For the month, the Arizona Department of Revenue reported that nearly $4.9 million in sales taxes — known officially as transaction privilege taxes — were collected in October for adult-use recreational marijuana. And when the 16 percent excise tax on cannabis is applied, Arizonans paid another $9.7 million to purchase marijuana, edibles, resins and more.

Arizona voters in 2020 approved Proposition 207, which legalized recreational marijuana use for adults, and sales began in January of this year.

The previous record for adult-use marijuana sales was in July, when dispensaries sold $54.5 million of cannabis.

Arizona also has a medical marijuana program and collects sales taxes for that, as well — and it remains a larger market than the adult-use program. For October, ADOR officials estimate there were $63 million in medical marijuana sales.

In all, both programs have combined to more than $1.1 billion in cannabis sales in Arizona in the first 10 months of the year; about $641 million in medical marijuana and $466 million in recreational.

That has added more than $175 million in tax revenue to state coffers, Nearly $41 million of that has gone to the state’s general fund, while $23 million has gone to cities where the sales were made. Another $6.6 million has gone directly to fund public schools.

The Arizona Mirror, an independent, nonprofit news organization, amplifies the voices of Arizonans whose stories are unheard; shines a light on the relationships between people, power and policy, holds public officials accountable; and provides a platform for progressive opinions. Arizona Mirror is part of States Newsroom, a national 501(c)(3) nonprofit supported by grants and a coalition of donors and readers.