The state of Arizona has specific regulations concerning the use, possession, and sale of marijuana. Adult use of marijuana is governed by the Arizona Department of Revenue and the Arizona Department of Health Services, which also manages the medical marijuana program.
Under Prop 207 found in Arizona Revised Statutes (A.R.S.) Title 36 Chapter 28.2, adults over the age of 21 are allowed to possess, purchase, transport, or process up to 1 ounce of marijuana or 5 grams of marijuana concentrate. The enforcement and regulation of these activities are the responsibility of the Arizona Department of Health Services (ADHS).
The Arizona Revised Statutes 36-2853 highlights the penalties and fines associated with marijuana violations, providing clear guidelines on the repercussions of possessing amounts of marijuana exceeding the legal limits. For amounts greater than allowed but not exceeding two and a half ounces, specific penalties are outlined.
Businesses looking to sell medical or adult use marijuana products must first acquire a license from the ADHS. Following this, they can apply for a transaction privilege tax (TPT) license through the Arizona Department of Revenue. Additionally, the department provides a comprehensive list of definitions and frequently asked questions to assist businesses and individuals in understanding the tax implications and legalities of marijuana use and sale.
The City of Tucson’s Planning Commission also plays a role in the regulation of marijuana facilities, allowing for dual-use (both adult-use and medical) but prohibiting stand-alone adult-use dispensaries.
Regarding personal cultivation, the Arizona Department of Agriculture provides guidelines and frequently asked questions on the cultivation of marijuana plants, ensuring that individuals comply with Arizona laws and proper labeling practices.
For retailers, the new TPT and Excise Tax Law for Adult Use Marijuana necessitates the reporting of sales using a specific business code on Form TPT-2, along with a 16% state marijuana excise tax reported on Form MET-1. More information on this tax law can be found on the Arizona Department of Revenue’s website.
The Department of Transportation has also issued a notice regarding the use of recreational marijuana, emphasizing that the use of marijuana by individuals in safety-sensitive positions is prohibited, regardless of state laws. More details can be found on the Department of Transportation’s website.