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Arizona adults spent $58 million on recreational marijuana in October

By: - December 9, 2021 9:16 am

Photo by Paxson Woelber/The Alaska Landmine | Flickr/CC BY 2.0

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% excise tax on cannabis is applied, Arizonans paid another $9.7 million to purchase marijuana, edibles, resins and more. 

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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. 

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Jim Small
Jim Small

Jim Small is a native Arizonan and has covered state government, policy and politics since 2004, with a focus on investigative and in-depth policy reporting, first as a reporter for the Arizona Capitol Times, then as editor of the paper and its prestigious sister publications, the Yellow Sheet Report and Arizona Legislative Report. Under his guidance, the Capitol Times won numerous state, regional and national awards for its accountability journalism and probing investigations into state government operations.

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