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Adult Use Marijuana File and Pay Collection Begins

February 23, 2021

Adult use marijuana dispensaries must remit transaction privilege tax (TPT) and marijuana excise tax (MET) to the Arizona Department of Revenue.

Marijuana establishments are liable for retail TPT and MET on adult use marijuana products immediately upon being licensed by the Arizona Department of Health Services to make such sales to Arizona consumers.


An ADOR TPT license and a MET registration number are required to file and pay taxes, and can be obtained through the Medical, Adult Use or Dual License Transaction Privilege/Use/Excise Tax Application (JTM-1). Businesses must report and remit their tax liability monthly online at

Marijuana Excise Tax Return (MET-1)

Dispensaries file a Form MET-1 to report the adult use marijuana excise tax.  The form has an inventory schedule required by statute and should be completed before computing the marijuana excise tax amount.  The marijuana excise tax amount is deductible from the retail tax base for TPT purposes.  Accordingly, Form MET-1 should be completed prior to completing the TPT return.  For January and February periods, please submit a paper MET-1 form. Forms for March and future periods can be submitted electronically.

TPT - Reporting Sales of Medical and Adult/Recreational Marijuana

The TPT return is used to report and remit state/county and city TPT liabilities on all retail sales, including the sale of medical or adult use marijuana and anything else sold by the business.

Medical and adult use marijuana dispensaries should use the following business codes to file properly.

017 Retail Retail sales of non-marijuana tangible personal property (e.g., marijuana accessories, jars, grow lights, etc.).
203 Retail - Medical Retail sales of medical marijuana (flower/leaf, edibles, etc.).  Purchaser must have a prescription and marijuana medical card.
420 Retail - Adult Use Retail sales of adult use marijuana and marijuana products (21+ years) (flower, edibles, etc.).
030 Use Tax Cost/value of items used from inventory (free product giveaways, testing, etc.).
029 Use Tax Items purchased from an out-of-state vendor on which no Arizona TPT is collected.

The applicable tax return(s) must be filed even if no sales were made or if no tax is due for the period. Returns with "zero" tax must be filed to avoid non-filer notices and penalty assessments.

For more information on filing requirements, visit



Tuesday, February 23, 2021