Medicinal weed sales continue to decline in Arizona

In Arizona, there’s a Grand Canyon-sized chasm between medical cannabis and recreational marijuana. Medical marijuana sales continue to decline, while adult-use marijuana sales are rising.

The latest figures released by the Arizona Department of Treasury showed that taxable medical cannabis sales totaled $31.3 million in October, marking the eighth consecutive month of decline.

On the other hand, adult cannabis sales in October totaled $73.8 million, a new high for the state’s recreational cannabis program.

These totals mark the continuation of a trend for Grand Canyon State’s dual cannabis markets.

Arizona voters legalized medicinal cannabis in 2010, and sales began two years later. Arizona voters also approved a proposal to legalize recreational cannabis in 2020, with sales slated to begin in January 2021.

Medical cannabis sales surpassed recreational sales in the first 11 months of 2021.

In December of this year, adult-use marijuana sales were $70,317,105, compared to $57,971,859 for medical marijuana sales in the same month.

Recreational cannabis sales have outpaced medical sales every month since.

As the AZ Mirror noted this week, “the collapse of the medical program follows a pattern seen by other states, with medical markets being overtaken in the wake of the legalization of recreational sales.”

The outlet has more about the different sales trends:

“In addition to the normal sales tax, the state levies a 16% excise tax on recreational sales; Medical patients pay approximately 6% in state sales tax, which is levied as a transaction privilege tax on cannabis retail outlets. Local jurisdictions charge about an additional 2% for all marijuana sales. One-third of recovery taxes collected are for community college and provisional community college districts; 31% for public safety — police, fire, fire districts, first responders — 25% for the Arizona Highway User Revenue Fund and 10% for the Judiciary Reinvestment Fund, dedicated to the provision of public health services, counseling, job training and other community services for communities adversely and disproportionately affected by arrests and criminalization of marijuana. The medicinal market has continued to bleed both sales and participants, following a trend in some states that legalized adult-use cannabis years after medicinal cannabis markets were established.”

Arizona was one of four states in 2020 where voters approved measures legalizing the sale of recreational marijuana (Montana, New Jersey, and South Dakota were the other three).

The measure, Proposition 207, required the state to “encourage the ownership and operation of marijuana facilities and marijuana testing facilities by individuals from communities disproportionately affected by the enforcement of previous marijuana laws,” a mandate that among other things, the first two designated dozen distribution licenses to people from communities affected by the War on Drugs.

The Arizona Department of Health required these applicants to take classes to “ensure that social justice applicants are prepared for the application process and the challenges of running a marijuana business.”

Led by cannabis industry veterans, according to the department, these courses included “two days of content and training focused on a number of aspects of operating an adult marijuana business, including legal requirements, business practices, regulatory compliance, and fundraising, as well as marketing and strategic.” Growth.”

Classes are now in session for some prospective Arizona marijuana dispensary owners. Social justice class, that is.

It’s a provision included in the ballot measure that last year voters in the state legalized recreational marijuana use for adults. The measure, Proposition 207, called on the state to “encourage the ownership and operation of marijuana facilities and marijuana testing facilities by individuals from communities disproportionately affected by the enforcement of previous marijuana laws.”

What that means in practice: The Arizona Department of Health and Human Services will issue 26 pharmacy licenses to people in communities hard hit by longstanding anti-pot laws.

According to the department, “Social equity license holders must comply with all laws and regulations governing adult-use marijuana facility licenses, including obtaining an operating license before opening their retail location.” Additionally, social justice license holders must develop and implement policies to document how the marijuana establishment is providing an advantage to one or more communities disproportionately impacted by the enforcement of Arizona’s previous marijuana laws.”