On January 22, Arizona celebrated one year of its recreational cannabis market and, based on data published by the state’s Department of Revenue, the industry racked up $520 million worth of sales in 2021.

Although December’s sales figures for Arizona’s cannabis market have not yet been confirmed by the department, data suggests that the state’s licensed dispensaries accumulated up $528,001,278 in adult-use sales throughout 2021. 

As a direct effect of this, the state pulled in $44,533,436 worth of tax revenue. These funds will be earmarked for transportation, law enforcement efforts and community colleges.

“I believe that the level of sales is close to where we expected,” said the founder of the Arizona Marijuana Industry Trade Association, Demitri Downing, during an interview with KJZZ reporters “I think there’s individuals who would like them to be higher. Compared to other states, it’s about consistent with what other states show.”

One year post-legalization, Arizona’s licensed companies have shifted $1.23 billion worth of cannabis

Once December’s sales revenue data has been finalized, Arizona will celebrate more than $1.3 billion in medical and recreational cannabis sales for 2021. Included in that amount is $60 million worth of sales for the month of November and $59 million for October.

Arizona’s adult-use cannabis sales kicked off on January 22, 2021, but not before the state health department approved 73 out of 130 licenses. 

Sales amounted to $2.9 million within the first 10 days of legal adult-use cannabis transactions in Arizona. Conversely, Arizona’s medical cannabis market kicked off on December 6, 2012, and managed to churn out $40 million in sales during the initial 12 months.

Activists initiate lawsuit over social equity cannabis licenses in Arizona

The year 2022 kicked off with a risky court hearing in Arizona. On January 28, cannabis activists engaged in heated debate over the state’s cannabis social equity license program. 

Specifically, the hearing alleged that big cannabis companies are being favored over smaller companies for the highly sought after licenses.

To ensure that people who’ve been disproportionately affected by Arizona’s cannabis laws get a chance of obtaining the licenses, activists have launched an ongoing lawsuit.

At the current time, in excess of 1,500 people have already applied for a social equity license in Arizona, which is an integral element of the voter-approved Proposition 207. In total, 26 such licenses are expected to be distributed among lucky state residents.

The primary aim of social equity licenses is to provide people who’ve been disproportionately impacted by cannabis laws with an opportunity to turn over a profit by running a legitimate business.

Once analyzed closely by activists, more than 500 applications were believed to be tied to large dispensaries. 

Presently, the Arizona State Legislature is pondering over a measure that would prohibit social equity license holders from selling their license within the first 10 years. 

In the event that they do sell it, the license must be issued to another qualifying applicant, as opposed to a corporation.