News

Cannabis Special Interest Section’s Bud Brief – November 2021

Published on November 23, 2021

Based on discussions with ADOR’s Office of Economic Research and Analysis, ADOR continues to provide significant outreach and education to taxpayers resulting in previous filings being amended. They reinforced that the taxable sales and tax figures indicated below may not an accurate reflection of ongoing future activity and may include activity from prior periods. Also, information related to estimated sales are continuously adjusted on the ADOR’s website as figures are reallocated to the months they are applicable. Figures provided below are as originally stated.

Adult-Use

View a list of approved marijuana establishments for adult use.

According to ADOR’s Office of Economic Research and Analysis, for the month of September, adult use marijuana taxable sales reported were $53,476,365 with TPT and excise taxes collected of $4,512,493 and $9,222,846, respectively. Total adult use marijuana sales reported and TPT and excise taxes collected year-to-date are $405,609,488, $34,264,725 and $72,183,717, respectively.

Medical-Marijuana Program

Arizona’s medical marijuana dispensaries closed the month of October 2021 with 10,462.82 pounds of product sold. This represents a 46% decrease in pounds sold compared to October 2020 (19,465.35). According to ADOR’s Office of Economic Research and Analysis, medical marijuana taxable sales for September 2021 were $64,293,430, with total TPT collected of $5,367,686.  Total medical marijuana sales and TPT taxes collected year-to-date are $572,075,025 and $47,888,484, respectively.

Other Arizona News

A lawsuit was filed against the state of Arizona alleging that the final state regulations adopted by the health department don’t go far enough to protect the intent of the social equity provisions in state law. (Source: mjbizdaily.com 11/18/2021)

Cannabis multistate operator Curaleaf Holdings signed a definitive agreement to acquire an Arizona-based MSO in a cash and stock transaction currently valued at $286 million. The acquisition of Tryke Cos., which does business as Reef Dispensaries, will expand Curaleaf’s presence in Arizona, Nevada and Utah. (Source: mjbizdaily.com 11/8/2021)

Arizona regulators finalized rules for the 26 social equity licenses to be issued as part of the state’s adult-use cannabis program, adding language that prevents an applicant from entering into a prior agreement to sell or transfer the license to a nonqualifying operator.  (Source: mjbizdaily.com 10/18/2021)

Other News

U.S. Rep. Nancy Mace, a Republican from South Carolina, plans to unveil a new bill, the States Reform Act, intended to legalize marijuana at the federal level. (Source: mjbizdaily.com)

ASCPA Cannabis & Hemp Series

Over the past three months, there have been several CPE opportunities in this area. Register for other webinars in the series at www.ascpa.com/cann.

  • Danielle Hernandez, Director of the Cannabis Practice and Agency Manager with Gilbert Insurance Group presented a 1-hour CPE titled Insurance Coverage Considerations in the Cannabis Industry.
  • Brion Nazarro, President of the Association of Commercial Cannabis Experts and Josephine Giordano, Director/National Cannabis Practice Leader with BeachFleischman PC, presented a 1-hour CPE titled Evaluating Cannabis Risk Management Framework
  • Representatives from ADOR and Melody Haddad, Tax Manager with BeachFleischman PC, presented a 1-hour CPE titled Marijuana Taxation: What to Know and How to Prepare for an Audit.   

For additional information on our Cannabis Special Interest Section activities, please contact Josephine Giordano, CPA, ABV, CFE, CFF, CBA, ASA, CDBV, CIRA, CICA, CTP, CCCE at jgiordano@beachfleischman.com or 602-792-5981.