Arizona saw marijuana sales drop, reaching the lowest numbers in nearly a year
The total for marijuana sales in Arizona was the lowest since September 2022, when the state reported sales of $ 80,9 million.
Arizona’s marijuana market trended downward in May, according to the latest figures released by the Arizona Department of Revenue (ADOR), as adult sales dropped to $ 82,9 million, while medical cannabis sales dropped to just $ 28,3 million, the lowest since the recreational season. sales began in January 2021.
Medical sales have declined consistently since peaking at $73.3 million in April 2021. In July of that year, sales of medical cannabis fell below $40 million for the first time. The market has never recovered.
Since September 2022, medical sales have been around $30 million. The leisure market has almost tripled these figures over several months in 2023, and the trend has continued through the latest report.
Leisure sales were initially estimated at more than $100 million in March, but ADOR revised the total by about $1 million in May. Meanwhile, estimated sales in April increased from $86.5 million to $90.1 million.
May’s total was the lowest since September 2022, when ADOR reported sales of $80.9 million.
Since recreational sales began 29 months ago, the medical market has sold $1.4 billion in product, while the recreational side has surpassed $2 billion in sales. The Smart and Safe Arizona Act, which voters approved in 2020, legalized the possession and use of marijuana for adults over the age of 18.
The first time combined medical and recreational sales reached $100 million was in March 2021, when medical sales were just over $73 million and recreational sales reached $59 million.
Since then, total cannabis sales have topped $100 million every month.
The last time recreational and medical sales were nearly equal was October 2021, when adult sales were $65.8 million and medical sales were $64.4 million.
Taxes collected on recreational sales in May were $13.3 million and the total for both programs was $15.6 million.
The state levies a 16% excise tax on recreational sales in addition to the regular sales tax; medical patients pay about 6% in state sales tax. Local jurisdictions charge an additional 2 percent or so for all marijuana sales.
The excise tax on adult marijuana sales has yielded about $ 182,3 million so far in 2023. In 2021, recreational cannabis generated $ 32,9 million for eleven months of sales, and in 2022 that figure jumped to $ 132,8 million. Since the program was launched, the state has collected more than $348 million in marijuana taxes.
One-third of those taxes are dedicated to community college and provisional community college districts; 31 percent to public safety, including police, fire departments, fire districts and first responders; 25 percent to the Arizona Highway User Revenue Fund; and 10 percent to the Justice Reinvestment Fund, which is dedicated to providing public health services, counseling, job training and other social services for communities that have been negatively and disproportionately impacted by marijuana arrests and criminalization.
The Arizona Department of Health Services reports that in July there were 126,938 qualified patient card holders, down from 127,288 in May and less than half of the 299,054 qualified patients reported in January 2021 at the start of the recreational sale.
Through July, consumers of medical cannabis in Arizona have purchased 4 620,7 pounds of marijuana in various forms. The total for June was 4,761.85 pounds.
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