Marijuana tax bringing in more money than projected in first year

PHOENIX — Arizona’s law legalizing recreational marijuana use for adults is a year old and it didn’t take long before a backstreet business turned into a mainstream industry. Combined with medical marijuana sales, Arizona’s cannabis industry now exceeds $1 billion in revenue. Arizona collects two taxes off cannabis sales, a transaction privilege tax and a 16% excise tax. Prop 207 dedicated excise tax revenues to help community colleges, municipal police, and fire districts, the Highway User Fund, Justice Reinvestment Fund, and the Attorney General. In 2021 the Maricopa County Community College District said it received $17.1 million from the marijuana excise tax.