A.R.S. § 36-2864: Marijuana Tax Rules
Transaction privilege tax; use tax; additional taxes prohibited; exception
Is marijuana taxed in Arizona?
In Arizona, marijuana and marijuana products count as tangible personal property, so they are subject to the state's retail transaction privilege tax and use tax. Apart from those taxes and one other tax the statute allows, the state and local governments cannot charge additional taxes, fees, or assessments on marijuana sales or on marijuana businesses, unless the fee applies generally to businesses that don't sell marijuana. This ban does not stop uniform increases to the retail transaction privilege tax rate, the use tax rate, or the generally applicable fees.
Full statute text
Official text last checked against azleg.gov:
36-2864. Transaction privilege tax; use tax; additional taxes prohibited; exception
(Caution: 1998 Prop. 105 applies)
A. For purposes of the transaction privilege tax and use tax levied and collected pursuant to title 42, chapters 5 and 6, marijuana and marijuana products are tangible personal property defined in section 42-5001 and are subject to the transaction privilege tax in the retail classification and use tax.
B. Except as provided in subsection A of this section and section 42-5452, this state and localities may not levy or collect additional taxes of any kind on the sale of marijuana or marijuana products and may not levy or collect any fees or assessments of any kind on the sale of marijuana or marijuana products or on the licensing, operations or activities of marijuana establishments or marijuana testing facilities, unless the fee or assessment is of general applicability to individuals or businesses that are not engaged in the sale of marijuana or marijuana products.
C. The prohibition imposed by subsection B of this section does not apply to uniform increases to the transaction privilege tax rate for the retail classification or use tax rate by this state or a locality or to uniform increases to fees or assessments allowed by subsection B of this section.
Drafted by AI from the official text and checked sentence by sentence against azleg.gov. ClearStatute is run by David Bartlett, who is not an attorney. Legal information, not legal advice — consult a licensed attorney for your situation.