News

Cannabis Special Interest Section’s Bud Brief – December 2021

Published on December 15, 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 that 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 October, adult use marijuana taxable sales reported were $59,978,873 with TPT and excise taxes collected of $5,038,213 and $9,980,570, respectively. Total adult use marijuana sales reported and TPT and excise taxes collected year-to-date are $465,588,361, $39,302,938 and $82,164,287, respectively.

Medical-Marijuana Program

Arizona’s medical marijuana dispensaries closed the month of November 2021 with 8,493.46 pounds of product sold. This represents a 53% decrease in pounds sold compared to November 2020 (18,143.35). According to ADOR’s Office of Economic Research and Analysis, medical marijuana taxable sales for October 2021 were $68,837,699, with total TPT collected of $5,748,722. Total medical marijuana sales and TPT taxes collected year-to-date are $640,912,724 and $53,636,206, respectively.

Arizona News

Regulators in Arizona are taking applications for social equity cannabis retail licenses despite ongoing lawsuits seeking to stop multistate marijuana operators from getting the permits. The deadline for would-be applicants to submit the required paperwork is Dec. 14. (Source: mjbizdaily.com 12/2/2021)

Other News

The SAFE Banking Act – which holds the keys to the U.S. financial system for marijuana companies – has been removed from an omnibus defense spending bill in Congress, possibly shattering the hopes of the cannabis industry for meaningful federal reform in 2021. (Source: mjbizdaily.com 12/7/2021)

ASCPA Cannabis & Hemp Series

On January 26, 2022, Cody Hershey, president of Integrated Compliance Solutions, will present a 1-hour CPE titled Baking Challenges in the Cannabis Industry. This webinar is a part of a series that began in June 2020.

Register for other webinars in the series at www.ascpa.com/cann.

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.