The Arizona Department of Revenue releases cannabis sales data for June and July

The Arizona Department of Revenue recently released new cannabis sales data reported for the months of June and July.

Medical cannabis sales began in Arizona back in December 2012, while recreational cannabis sales in Arizona began in January 2021. However, recent data shows that both industries are seeing a gradual decline in sales.

Medical cannabis sales fell to $28 million in June, followed by a downward trend of $26.1 million in July, which is the lowest medical cannabis sales figure since recreational sales began, according to the Arizona Mirror. Over the last 30 months, medical cannabis sales have fallen below the $30 million mark only five times – all in 2023. These include the months of January, February, May, June and July, while sales in March and April made remained over 30 million US dollars.

The highest amount of medical cannabis sales the state has had in its sales history was in April 2021 at $73.4 million, and other monthly sales data shows a decline in sales, such as July 2022 at $40 million.

These steady declines in medical sales are offset by slight increases in recreational sales. In March 2023, leisure sales reached $99.9 million, while in April leisure sales reached $90.1 million. However, June revenue data shows a decline to $85 million, followed by $77 million in July.

The total amount collected from total cannabis sales in 2022 was $1.4 billion (medical brought in $500 million and recreational brought in $9.50 million). Since January 2021, the state has collected $1.5 billion in medical cannabis sales, while recreational sales brought in more than $2.2 billion during the same period.

Year-to-date data shows Arizona has brought in a total of $207 million in medical cannabis sales and $621 million in recreational cannabis sales so far between January and July.

So far, the data shows how recreational cannabis has reached new heights while medical cannabis sales are gradually declining, but both markets have been trending down overall since March 2023.

State excise data shows that recreational cannabis has generated more than $208.2 million (so far) in 2023, an increase compared to 2021 excise data. The department shows that cannabis for adult use generated $32.9 million during the year 11 months, followed by $132.8 million in 2022. In total cannabis excise taxes, Arizona has more than 360 million US dollars collected.

State law requires that a third of cannabis excise taxes go to community colleges, while 31% goes to public safety, law enforcement and fire departments. In addition, 25% will be donated to the Arizona Highway User Revenue Fund, which will be distributed to various cities and towns to improve highway construction and other related expenses. Finally, 10% of cannabis taxes go to the Justice Reinvestment Fund, which can be used for various substance abuse programs, workforce development, but also to achieve other goals such as helping residents clear their criminal records.

Cannabis patient card numbers are collected by the Arizona Department of Health Services, which recently reported that there were 126,938 cardholders in July and 124,496 cardholders in August. The state’s highest number of cardholders was recorded in January 2021 with 299,054 patients. The department also said medical cannabis patients purchased 4,719 pounds of various cannabis products in August. Between January and August patients purchased £37,979.

Even though medical cannabis sales have declined, this has not stopped patients from using it to treat their various medical conditions. A bill to add autism and post-traumatic stress disorder to the list of eligible conditions was introduced in March and passed the House of Representatives in June.

One year ago, in 2022, more than 1,450 Arizona residents were pardoned for their previous federal cannabis possession convictions between 1992 and 2021, as ordered in the executive order announced by President Joe Biden. According to Arizona attorney Jonathan Udell, this was a welcome change for people whose convictions had been on their record for decades. “I think there are a lot of people out there who really feel the pain of being labeled as a non-law-abiding citizen,” Udell said. “And that sends a very clear message to people: You’re not a bad person because you once smoked a plant that grew out of the ground or because you had some weed in your pocket.”

As the industry closely monitors the performance of both medical and recreational cannabis, other substances being researched for medicinal purposes continue to increase. In early May of this year, an Arizona veteran faced prison time for attempting to treat his cluster headaches with DMT. “It’s the worst pain I’ve ever felt in my life,” Laetzsch said of the headache. “Nothing helps the headache better than DMT when I actually suffer from it. This will eliminate the headache immediately. A small blow relieves the headache for about one to one and a half hours. If I take a bigger hit it can last longer, but some of the headaches last a few hours so I would have to take a few hits during this episode. But I would be pain free. It wasn’t even a psychoactive amount that I smoked to relieve the headache.” Currently, DMT is illegal in Arizona.

Psilocybin is also illegal in the state, although laws have recently been passed allowing research to be conducted on the substance.