Arizona

Arizona legalized medical cannabis in 2010 via Proposition 203 (Arizona Medical Marijuana Act) and adult-use cannabis in 2020 through Proposition 207 (Smart and Safe Arizona Act), with retail sales beginning January 22, 2021. The Arizona Department of Health Services (ADHS) regulates all cannabis licensing and enforcement. As of 2026, approximately 160 licensed dispensaries operate statewide under a license cap, with the Rural Opportunity Initiative (SB 1713, 2025) authorizing up to 18 additional licenses for underserved counties. Five years of adult-use sales have generated over $1.4 billion in revenue. The state imposes a 16% excise tax on adult-use sales. Arizona operates a dual-license system where dispensaries may serve both medical patients and adult-use consumers. Monthly sales exceeded $106 million in early 2025.

Ask the Expert about Arizona

Regulator

Arizona Department of Health Services

Key Legislation

Arizona Revised Statutes Title 36, Chapter 28.2 — Smart and Safe Arizona Act

Year Legalized

2010

Program Size

~160 licensed dispensaries; $1.4B+ cu...

Key Facts

Adult-use legalized via Proposition 207 in 2020; retail sales began January 22, 2021
16% excise tax on adult-use cannabis sales; medical patients are exempt from excise tax
License cap of 160 retail dispensaries statewide; Rural Opportunity Initiative adds up to 18 rural licenses
Dual-license system allows dispensaries to serve both medical and adult-use consumers
Five years of adult-use cannabis have generated over $1.4 billion in state revenue

Key Legislation

Arizona Revised Statutes Title 36, Chapter 28.2 — Smart and Safe Arizona Act (Proposition 207)

Regulatory Body

Arizona Department of Health Services (ADHS)

Country Info

ISO Code

Region

North America

Tier

Tier 1 — Active Program

Status

Adult-Use & Medical — Legal

Sources

Arizona Revised Statutes Title 36, Chapter 28.2 — Marijuana ADHS Bureau of Marijuana Licensing

Disclaimer: This information is for general reference only and does not constitute legal advice. Cannabis regulations change frequently. Always verify with official sources and local legal counsel before making compliance decisions.