Reported by The Marijuana Herald – Marijuana News and Information.
(June 9, 2025) -- Arizona collected more than $24.7 million in marijuana tax revenue during May 2025, pushing the year-to-date total past $122 million. The surge reflects a rebound in adult-use cannabis sales and continued steady contributions from the state’s medical marijuana market.
According to the Arizona Department of Revenue, the 16% excise tax on adult-use cannabis generated $16.1 million in May. This excise tax, imposed at the point of sale, is earmarked to support community colleges, public safety agencies, highway improvements, and justice reinvestment programs. In addition, the state’s transaction privilege tax (TPT)—Arizona’s version of a retail sales tax—generated $7.2 million from recreational sales and $1.4 million from medical marijuana transactions. An additional $630,000 was reported under miscellaneous retail classifications.
May’s collections represent a significant uptick from April’s $22.4 million, which had been the lowest monthly total so far in 2025. Monthly collections earlier in the year included $26.1 million in January, $24.9 million in February, and $24.2 million in March. Combined, the state has now collected $122.38 million in marijuana-related tax revenue through the end of May.
The bulk of these funds is being generated by recreational cannabis sales, which account for more than 90% of Arizona’s marijuana tax revenues. While the state’s medical marijuana program continues to contribute, its share has declined in recent years as more consumers shift to adult-use purchases.
In 2024, Arizona collected nearly $190 million in combined marijuana taxes. If current trends continue, the state is likely to meet or exceed that total by the end of this year.
These revenue figures demonstrate the ongoing economic significance of legalized cannabis in Arizona and highlight the program’s importance in supporting essential public services throughout the state.