Medical marijuana businesses are required to pay all state and local taxes. Medical-marijuana sales are subject to the state's
Knowing the tax rate allows dispensary owners to plan financially. The tax rate can impact what the best pricing is for products and can also impact financial projections. Fortunately, Arizona's sales tax rate at the retail marijuana store level is not as exorbitant as many other states. Many other states add excise taxes onto marijuana sales which then eats even further into profit margins.
Prop 203
Sec. 4. Section 43-1201, Arizona Revised Statutes, is amended to read:
B. NONPROFIT MEDICAL MARIJUANA DISPENSARIES UNDER TITLE 36, CHAPTER 28.1, ARE EXEMPT FROM THE TAXES IMPOSED UNDER THIS TITLE.
Senate Bill 1494
36-2806. Registered nonprofit medical marijuana dispensaries; requirements; rules; inspections; testing
A. A registered nonprofit medical marijuana dispensary shall be 45 operated on a not-for-profit basis. The bylaws of a registered nonprofit medical marijuana dispensary shall contain such provisions relative to the disposition of revenues and receipts to establish and maintain its nonprofit character. A registered nonprofit medical marijuana dispensary need not be recognized as tax-exempt by the internal revenue service and is not required to incorporate pursuant to title 10, chapter 19, article 1.