Arizona Sets New Adult-Use Cannabis Sales Records While Medical Sales Fall

Medical cannabis sales in Arizona fell to their lowest total since January 2021 in May – slightly less than $45 million – only the second time in the past year they dropped below the $50 million mark, the Arizona Mirror reports. Adult-use sales in May topped $76.5 million, the fifth time they had surpassed the $70 million mark since the rollout of the industry at the beginning of last year.

The Arizona Department of Revenue also revised April’s adult-use sales figures to $81.2 million – up from the $75.5 million initially reported by officials that month – making it the best month for adult-use sales in the state yet.

Preliminary adult-use figures for June indicate $66.4 million in sales, which would represent they are on pace for another record, while preliminary medical cannabis sales figures are $33.7 million as they continue their seven-month downward trend.

The number of active medical cannabis cardholders in the state fell from 191,682 in June to 158,154 in July.

Total tax revenues for medical and adult-use sales in May were reported at $24.3 million, including $13.4 million from the 16% excise tax on adult-use sales, the report says. Year-to-date, the state has brought in $177.3 million from the excise tax on adult-use cannabis products.

Under the state’s legalization law, one-third of the cannabis taxes collected are earmarked for community college and provisional community college districts; 31% for public safety; 25% to the Arizona Highway User Revenue Fund, and 10% to the justice reinvestment fund, which is akin to a social equity program, used for public health services, counseling, job training, and other services for communities that have been most adversely impacted by the war on drugs.