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Arizona’s record-breaking cannabis market
In the landscape of booming and busting cannabis markets, Arizona emerges as a standout success story. A naturally beautiful state that attracts a sizeable group of tourists every year, Arizona skyrocketed past $1 billion in total cannabis sales for 2023. Unlike its northern neighbor of Nevada, Arizona has exceeded $1 billion in sales for three consecutive years, with 4.9% increase from ‘22 to ‘23 to boot. (Nevada, conversely, suffered from a nearly $115 million shortfall from FY 2022 to 2023 despite several millions more tourists than Arizona.)
Cannabis taxation and market comparisons
Compared to other states with recreationally legal cannabis, Arizona packs a considerably lower tax rate, levied as a 16% excise levy. Compare:
Nevada levies a 25% tax rate, combining both wholesale and retail excise taxes Washington has an absurdly high 37% retail excise tax rate Montana taxes recreational cannabis sales at 20%
As of FY 2022, the per capita rate for excise taxes is also incredibly lower in Arizona than other recreationally legal states, at only $18. The only two states as of FY 2022 that had a lower per capita rate were both Maine and Michigan.