Arizona cannabis business compliance guide

In this guide, we'll cover:
Legally reviewed by:

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Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.

Market Type

In Arizona, cannabis is regulated by the Department of Health Services (ADHS). Medical and adult-use cannabis is allowed. Arizona state law allows a visiting qualifying patient with a registry identification card or its equivalent, issued by the qualifying patient's home state, to possess or use marijuana. However, a visiting patient is not authorized to purchase marijuana from an Arizona dispensary because the dispensary is required in statute to access a state verification system before dispensing marijuana.

Inventory & Sales Tracking

Arizona uses the Marijuana Licensing Management System (MLMS) to track medical sales history and to verify medical patient and caregivers have active registrations. However, Arizona does not use any state seed-to-sale traceability system to track adult-use sales or inventory actions. Licensees are free to use their own software to track sales, inventory and other business actions. In lieu of a state traceability system, licensees submit reports to the ADHS.

Purchase Limits


  • A marijuana facility agent will ensure that the amount of marijuana being sold does not exceed:
  • One [1] ounce of flower, with not more than five [5] grams being concentrate


  • Dispensing agents will verify that the amount dispensed does not exceed:
  • Two and a half [2.5] ounces of marijuana in a 14 calendar day period.


Concentrates and edibles are 1:1 based on weight.



5.6% Transaction Privilege Tax (Sales Tax)

16% Excise Tax

(local tax may apply)


5.6% Transaction Privilege Tax (Sales Tax)

(local tax may apply)


  • Delivery of medical marijuana is allowed but this can be restricted by a municipality; adult-use delivery is not currently allowed but the ADHS has indicated it will be allowed after rules are promulgated
  • Per this guidance bulletin, transactions must be performed in real-time at the point in time and location at which transaction occurs.
  • Transactions must be recorded in the licensee’s POS and the medical marijuana electronic verification system at the time dispensary relinquishes possession of the medical marijuana to patient/cg regardless of location
  • All sale requirements apply to delivery (ex. verify ID and patient registration, record info required to be entered in electronic verification system, etc) and a dispensary should verify this information one more at the time and location of the delivery
  • Cannabis paraphernalia cannot be delivered

Things to Note

  • Retailers are required to display the price of each item purchased visibly to the public at each check out location. In other words, when a customer is at the check out register, they must be able to see the price of each item scanned by, or input into, the check out register to allow the customer an opportunity to inquire about a specific price if it does not appear as expected.

State Resources

The ADHS compiles their adult-use rules and regulations here and their medical rules and regulations here.



How much does it cost to open a dispensary in New York?

How long does it take for applications to be reviewed?

How many licenses do we expect New York to issue?

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