ADOR Issues New Adult Use Marijuana Tax Resources

Website information and outreach team in place

Dedicated web pages on the Department of Revenue’s website – www.azdor.gov - are now live. The Adult Use Marijuana resource page provides information on the adult use marijuana law that requires dispensaries to begin filing and paying transaction privilege tax (TPT) and excise tax in Arizona. The online section outlines tax requirements, frequently asked questions, examples, and other helpful information. 

The Outreach Unit will be connecting with establishments to introduce itself, assist with registration, and ensure systems are set up correctly to collect TPT and excise tax. Additionally, the team of ADOR specialists will provide guidance to businesses who also sell medical marijuana and now are selling adult use (dual licensed). The unit can be reached by email at [email protected].

Medical Marijuana
Medical marijuana dispensaries in Arizona are subject to state and local retail TPT on their sales of medical marijuana and other products sold at the dispensaries. They must hold a current TPT license with ADOR and file and pay retail TPT on these sales.

Adult Use (Non-medical) Marijuana
Adult use marijuana businesses in Arizona are subject to state and local retail TPT on their sales of adult use marijuana and other products.  Adult use marijuana retailers must report such sales using a new Adult Use Marijuana business code on Form TPT-2.

In addition to retail TPT, adult use marijuana retail sales are also subject to a 16% state marijuana excise tax (MET). This tax must be reported on Form MET-1, which is separate from and in addition to Form TPT-2. To file and pay MET, an adult use marijuana retailer must register with ADOR in addition to applying for a TPT license.

ADOR accepts feedback on new publications in an ongoing effort to engage with and inform the public of state and local tax issues. See Publication - Marijuana (Medical Only, Adult Use Only, Dual Licensee).

Registration

Establishments must register to collect, file, and pay marijuana excise tax by completing Form JTM-1 and emailing the form to [email protected].

Enhancements are being made to allow marijuana establishments to file and pay online at AZTaxes.gov.

To receive Arizona marijuana taxation updates, be sure to subscribe to the “AZ Marijuana Taxation” list.

Tuesday, February 2, 2021