Arizona’s cannabis market continues to grow

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Legal cannabis sales are making a difference in revenue in the state’s revenue

After just one year has passed since recreational marijuana was legalized in Arizona, sales recorded a total of $1.6 billion in 2021. According to an industry growth investment group, this made Arizona the second strongest cannabis market, surpassed only by the top state, California. Without a doubt, the Grand Canyon State is increasingly becoming a key player in the market for sales in this space.

Experts highlight retail sales as excellent, but consider that cultivation is far from receiving the same honors. Production continues to lag far behind other states and that causes Arizona to lose some points.

While experts say marijuana could become a solid part of Arizona in the next few years, the industry first has to overcome certain obstacles to growth on a global level. They say restrictions on financing a crop that is still illegal at the federal level and limited trade are two barriers that need to be overcome.

“We don’t see SWAT teams busting in the doors of dispensaries,” said Aaron Smith, CEO of the National Cannabis Industry Association. “But we do have problems with not being able to take tax deductions like a normal industry, or being able to have interstate commerce, which really creates a barrier to entry for a lot of folks.”

Be that as it may, the marijuana industry in Arizona continues to grow and that behavior is expected to propel even further as the years go on. The Arizona Department of Revenue reports that marijuana sales generated $221.3 million in taxes in 2021. By 2022, it is expected that sales could eclipse that figure, which would not be surprising considering that the first nine months have recorded $196.4 million in taxes.

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