PHOENIX, April 26, 2019 /PRNewswire/ — In addition to paying nearly double what most businesses pay in federal taxes (thanks to the 280E federal tax provision) Arizona’s medical cannabis program contributes substantial state and local tax revenue right here in our state.
Medical cannabis businesses are required to pay all state and local taxes. Medical-cannabis sales are subject to the state’s 5.6 percent sales tax, as well as city and county taxes that range from 0.25 percent to 4 percent.
The Arizona Dispensaries Association (ADA) estimates that medical cannabis sales last year brought in $46 million in state and local tax revenue. That money is used by local governments to fix roads, support education and preserve public safety.
In addition, the 117 operating medical cannabis dispensaries, and their integrated farms, also pay property taxes in Arizona.
Finally, the state fund from card fees, which cost dispensaries $500 annually to renew for each employee, has overflowed to $60 million so far.
Arizona’s medical cannabis program currently provides access to 190,000 patients in a state with 7 million people. Those Arizona patients pay all their taxes on medical cannabis, while all pharmaceutical drugs are tax-exempt.
Tim Sultan, Executive Director of the Arizona Dispensaries Association (ADA), said, “Arizona taxpayers benefit from every sale of medical cannabis. And the small business owners, who operate local dispensaries, are proud to give back to their communities.”
The AZ Department of Revenue, counties, and cities all have tools available to ensure tax compliance from the industry – just like any other business. The ADA says they work collectively with government entities, including Arizona’s Dept of Health Services and Dept of Revenue, to provide education and ensure compliance in this emerging industry.
The Arizona Dispensaries Association (ADA) is the voice of Arizona’s cannabis industry. ADA membership is comprised of licensed dispensary owners and those actively engaged in business in Arizona’s medical cannabis industry. The organization is dedicated to advancing the AZ cannabis industry through political advocacy, public education, and professionalism.
Learn more at http://arizonadispensaries.org/
Tim Sultan | 520.440.7442
SOURCE Arizona Dispensaries Association