GreenGrowth CPAs logo
Let's Talk

Market Map

Arizona
Cannabis Market
Get Started

Arizona Cannabis Market At-A-Glance

Overall Rating: B+
The Arizona cannabis market is booming and the state expects to sell over $1,000,000,000 in 2021, collecting over $150,000,000 in tax revenue. The Arizona cannabis market pace is faster than Colorado's, for comparison.
Medical Use: Yes
Adult Use: Yes
Market Potential
A+
There is great potential in Arizona to have a successful cannabis business since the market is relatively new and booming.
Licensing
A
Licensing is rather inexpensive. Vertical integration makes licensing easier.
Competition
C+
There are many MSO's in the Arizona cannabis market that inhibits smaller shops to prosper. Competition in Arizona's cannabis market is high.
Tax/Regulatory Structure
B
Lower excise tax, low sales tax. Very average tax structure.

Arizona Cannabis Details

Population (Rank)
7,279,000
#14
Size/Density
17.92 sq. miles
#33
Medical Cannabis?
Yes
2010
Adult-Use Cannabis?
Yes
2020
2020 Medical Sales
2022 Projected Medical Sales
$633,000,000
$948,000,000
+50%
2020 Adult Use Sales
2022 Projected Adult Use Sales
$0
$243,000,000
+100%
Regulatory Agency
Arizona Department of Health Services
https://www.azdhs.gov/licensing/medical-marijuana/index.php
# of Dispensaries (allowed/issued)
130
130, 94 in operation
# of Cultivators (allowed/issued)
Must be tied to a dispensary – 130
60
# of Manufacturers (allowed/issued)
Must be tied to a dispensary – 19
19
# of Testing Labs (allowed/issued)
No testing by law
No testing by law
Vertical Integration?
Required – Although dispensaries can obtain products from other dispensaries
Residency Requirements?
Yes – must submit 1 of 3 forms of Arizona photo ID
Social Equity?
Yes

Cannabis Taxes

Combined Tax Rate
21.6%
Excise Tax
NA
Retail Sales Tax
16%
Local Sales Tax
NA
State Sales Tax
5.6%
Cultivation Tax
NA

Licensing Fees (per year)
*Varies based on gross revenue

All License Renewals
$1,000

Application Fees

Dispensary Registration
$5,000
Change of Location – Dispensary
$2,500
Cultivation Registration
$5,000
Change of Location – Cultivation
$2,500
Distributor Registration
$5,000
Change of Location – Distributor
$2,500
Testing Facility Registration
$5,000
Change of Location – Testing Facility
$2,500
22/09/2021

California – US HQ
10250 Constellation Blvd.
Los Angeles, CA 90067

Belgrade – EUR HQ
Milutina Milankovića 1
Beograd 11070, Serbia

Youtube Linkedin Instagram Facebook-f
© 2023 GreenGrowth CPAs Inc. All Rights Reserved.

Privacy Policy | Accessibility Statement

The information contained in this website is meant only for guidance purposes and not as professional legal or tax advice. Further, it does not give personalized legal, tax, investment or any business advice in general. For professional consultation, please sign-up for our services. GreenGrowth CPAs disclaims any and all liability and responsibility for any and all errors or omissions for the content contained on this site. Please review our privacy policy here.