Az marijuana gross sales proceed downward development after peaking within the spring

Each the leisure and medical
marijuana markets proceed to lose efficiency as they mature, although
adult-use gross sales proceed to far outpace what’s offered to individuals who have
medical marijuana playing cards.

Leisure gross sales started on the finish
of January 2021 and since that point, the person markets have taken
wildly divergent paths as medical gross sales repeatedly decline and
leisure gross sales have develop into the dominant market as Arizona hashish
customers develop into extra accustomed to the novelty of authorized gross sales.

The newest report from the Arizona Division of Income accounted for gross sales knowledge from June and July.

In June, medical hashish gross sales
dropped to barely beneath $28 million, however the July complete of $26.1
million is the bottom the medical market has seen since leisure
gross sales started.

Out of the earlier 30 months,
medical gross sales have solely been beneath $30 million 5 occasions, and all of
these have been this 12 months. Between January and July, there have solely
been two months with medical gross sales above that threshold, in March and
April.

Medical gross sales have declined
constantly since a peak of $73.4 million in April 2021. By July 2022,
medical gross sales dropped beneath $40 million for the primary time and the
market has constantly misplaced floor to leisure, which has seen its
personal measured decline within the interim.

Leisure gross sales had been initially
estimated at greater than $100 million in March, however ADOR revised that
complete all the way down to $99.9 million. On the identical time, it elevated estimated
gross sales in April from $86.5 million to $90.1 million.

The newest report continues the development of adjusting gross sales figures, whilst general gross sales drop.

But, regardless of the malaise, hashish
gross sales are more likely to strategy final 12 months’s complete of $1.4 billion, as gross sales
year-to-date by way of July are round $207 million for medical and extra
than $621 million for leisure.

Since leisure gross sales started, the
medical market has offered almost $1.5 billion in product, whereas the
leisure facet has surpassed $2.2 billion.

Mixed, hashish gross sales have
remained above a month-to-month $100 million mark since March 2021, though if
the developments proceed, it will not be lengthy earlier than gross sales drop beneath that
complete.

The final time leisure and
medical gross sales had been wherever close to equal was October 2021, when adult-use
gross sales had been $65.8 million and medical gross sales had been $64.4 million. That was
the primary month that leisure gross sales outpaced medical gross sales.

Taxes collected on leisure gross sales
in Might had been elevated from $13.3 million to $13.9 million and as of
this report, however dropped in June and July to $13.6 million and $12.3
million, respectively.

The state collects a 16% excise tax
on leisure gross sales along with the usual gross sales tax; medical
sufferers pay roughly 6% in state gross sales tax. Native jurisdictions cost
a further 2% or so for all marijuana gross sales.

The excise tax on adult-use marijuana
gross sales has yielded about $208.2 million to date in 2023. In 2021,
leisure hashish generated $32.9 for eleven months of gross sales, and in
2022 that quantity jumped to $132.8 million. For the reason that program launched,
the state has collected greater than $360 million in marijuana excise
taxes.

One-third of these taxes are
devoted to neighborhood school and provisional neighborhood school
districts; 31% to public security, together with police, fireplace departments,
fireplace districts and first responders; 25% to the Arizona Freeway Person
Income Fund; and 10% to the justice reinvestment fund, which is
devoted to offering public well being companies, counseling, job coaching
and different social companies for communities which have been adversely
affected and disproportionately impacted by marijuana arrests and
criminalization.

The Arizona Division of Well being
Companies stories on medical hashish program participation month-to-month and
is usually two to a few months forward of ADOR.

As of July, there have been 126,938
qualifying affected person cardholders, and the downward development continued to
124,496 in August from a excessive of 299,054 qualifying sufferers reported in
January 2021 at first of leisure gross sales.

In August, Arizona medical hashish
customers bought 4,719.26 kilos of marijuana in numerous varieties. 12 months
to this point by way of August, that complete is 37,979.71 kilos.