420 with CNW — New Jersey Lawmaker Introduces Bill Seeking to Cap Medical Cannabis Prices

State officials in New Jersey acknowledge the concerns raised by medical-cannabis patients regarding the steep prices of marijuana products. However, the officials stress their limited authority under existing laws, which grant them no jurisdiction over the pricing policies of dispensaries.

Democratic legislator Senator Troy Singleton is looking to neighboring Pennsylvania for inspiration. Pennsylvania’s medical-cannabis law includes a provision allowing state authorities to impose price limits if marijuana prices become exorbitant. Singleton aims to replicate this provision in New Jersey, proposing a bill that would empower the state’s cannabis regulator to impose price limitations on medical-marijuana providers if their pricing practices are deemed unjustifiably high relative to their operational costs. The limits would be revisited every six months.

Singleton underscores the pressing issue of exorbitant cannabis prices in New Jersey, particularly for medical users. Price caps, in his opinion, can create market pressure and, as a result, result in lower pricing for customers.

Chris Goldstein, an advocate for cannabis reform who closely monitors marijuana prices in both Pennsylvania and New Jersey, draws parallels between the pricing dynamics of marijuana and other commodities. He expressed concerns about corporate greed driving prices upward, noting that despite promises of increased competition bringing prices down, prices have remained stubbornly high in New Jersey.

Critics such as Goldstein attribute the high prices to corporate groups controlling the majority of the cannabis industry in New Jersey. Most cultivators are corporate entities, leaving only a few independent players.

Comparing prices, it’s evident that marijuana is considerably cheaper in Pennsylvania than in New Jersey. For instance, an eighth at Ascend in Fort Lee costs $65 (or $50 on sale), while the same amount is $15 in Scranton, Pennsylvania. Likewise, an eighth at Bordentown’s Curaleaf costs $60, whereas in Harrisburg, Pennsylvania, it’s only $32.50.

Cannabis and disability activist Edward “Lefty” Grimes draws attention to the disparity in cost between legal dispensaries and the traditional market. The high cost of extracted marijuana oil, or “dabs,” is one of his points of contention, as it is far cheaper in the legacy market.

Goldstein laments the persistently high prices of marijuana in New Jersey compared to other states, suggesting that these prices deter people from enrolling in the medical cannabis program. Grimes believes that price-fixing laws are a workable way for legislators to guarantee that individuals suffering from illnesses such as post-traumatic stress disorder (“PTSD”), multiple sclerosis and cancer may obtain inexpensive marijuana products.

While Singleton has championed various bills aimed at reforming the marijuana sector, he acknowledges the challenges of passing such legislation in the legislature. Although the price cap bill has yet to progress, Singleton remains committed to advocating for more accessible pricing in the market.

While the entire cannabis industry including major companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) wish that patients and other users get the marijuana products they need at the most affordable prices possible, the wish to put price caps may be concerning given the rapidly changing market conditions on the ground and the slow rate at which regulators respond to such changes.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Germany May Initiate Legal Adult-Use Cannabis Sales Via Regulations, Bypassing Standalone Law

Germany is progressing with the next stage of cannabis legalization by initiating a pilot program for commercial sales using an administrative process instead of waiting for legislators to pass a separate measure as initially anticipated. It has long been expected that lawmakers would introduce and approve additional sales bills to complete the second phase of legalization. However, the government is opting for a rulemaking approach, potentially expediting the implementation process.

Cannabis legalization was set in motion under a measure led by Germany’s Ministry of Health, which went into force in April 2024. This allows adults to use and grow marijuana and join clubs for access to the plant, with cooperative launches expected in July. Nonetheless, there is currently no established commercial sales road map.

According to a report from Tagesspiegel Background, the existing law provides regulatory flexibility to build upon the original reform. Germany’s Ministry of Agriculture has the authority to create regulations for a commercial pilot initiative, enabling adults to purchase marijuana in specific areas without requiring further legislative action.

However, this approach also raises the possibility of easier reversal by a future government. Nevertheless, in the short-term, expediting the sales process is possible. According to reports, representatives from the Agricultural Ministry have sent out a letter asking for comments by May 10, 2024, on possible rules on retail sales under a pilot initiative.

Karl Lauterbach, Germany’s health minister, who has been leading the government’s marijuana legalization efforts, mentioned to Bundestag members last year that the commercial sales program is under consideration. With legalization already in place, there is growing pressure to accelerate this process.

Previously, the Bundesrat representing different states attempted to block the legalization proposal enacted last September, but this effort failed. Bundesrat members later worked with Lauterbach and other government officials to find a compromise.

The first legalization framework was accepted by Germany’s cabinet in late 2022, but to uphold its international responsibilities, the government sought approval from the European Union. Hearings were held in 2022 to provide legislation that would remove the prohibition.

In November 2023, government representatives from various countries, including the United States, convened in Germany to discuss international cannabis policy as the host country pursued legalization.

A delegation of German legislators visited the United States in 2022, touring marijuana businesses in California to inform Germany’s approach to legalization. The visit followed a groundbreaking meeting between Netherlands, Germany, Malta and Luxembourg officials to discuss plans and obstacles related to recreational cannabis legalization.

The coalition government leaders revealed some details of their agreement to legalize cannabis in 2021 and declared that they had come to an agreement to eliminate prohibition.

Meanwhile, the drug control arm of the United Nations recently restated its stance that legalizing cannabis for nonscientific or nonmedical purposes violates international treaties. However, it acknowledged Germany’s government for scaling back its marijuana plans before the upcoming vote.

This expedited way to get adult-use cannabis sales underway is likely to be applauded by the wider marijuana industry, including major companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF), because as it would facilitate access to recreational marijuana for Germans who are interested in consuming the substance.

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420 with CNW — FDA Boss Says DEA Doesn’t Have Reason to Delay Cannabis Rescheduling

U.S. Food and Drug Administration (FDA) director Robert Califf noted before a House committee on April 11, 2024, that there is no justification for the U.S. Drug Enforcement Administration (DEA) to postpone making the much-anticipated decision to move cannabis from Schedule I to III of the Controlled Substances Act (CSA).

However, Califf suggested that the DEA might treat recreational cannabis differently from medical cannabis, a move that could significantly impact the American marijuana industry. Analysts have speculated on the implications of such a potential distinction, noting that it might result in tax advantages for medical cannabis enterprises over recreational ones.

Califf’s remarks were made during a comprehensive hearing convened by Representative James Comer (R), who chairs the Oversight and Accountability House Committee. Comer raised concerns about the FDA’s oversight of new tobacco products used for nicotine vaporization and its reluctance to regulate products derived from hemp, such as CBD. In response to Comer’s criticisms, Califf shifted the responsibility to Congress, asserting that the current regulatory frameworks are inadequate for CBD and advocating for the establishment of new regulatory measures.

Califf’s discussion on the potential reclassification of cannabis was prompted by a query from Representative Nancy Mace (R), a prominent advocate for cannabis reform. Mace sought updates on the DEA’s assessment of the FDA’s findings from last year, which acknowledged the medicinal value of marijuana and recommended its reclassification to Schedule III.

Califf refrained from providing specific details, noting that he wouldn’t tell even if he knew. However, he emphasized the absence of justification for any delay on the part of the DEA, stressing the need for consideration of existing regulations. He also emphasized the importance of congressional guidance in navigating the cannabis regulation issue.

Drawing a line between recreational and medical cannabis, Califf highlighted the distinction between their respective purposes and routes of validation. While acknowledging the medical benefits of cannabis when used for therapeutic purposes, he cast doubt on its utility for recreational use, suggesting that it lacks medicinal value in such contexts. It remains unclear whether Califf’s insights will affect how the DEA makes a decision.

According to a DEA official, the agency typically takes up to six months to evaluate recommendations from health authorities regarding scheduling changes. This timeframe aligns with the duration since the current assessment of cannabis began. These discussions occurred amid the Biden administration’s efforts to promote marijuana pardons and oversee the cannabis scheduling review.

The entire marijuana industry, including leading companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF), will be waiting with bated breath to know what final decision the DEA makes regarding the rescheduling of marijuana under the CSA and the resultant implications for the trajectory of the industry.

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First Marijuana Consumption Lounge in Nevada Set to Open by Month’s End

Earlier this month, the Nevada Cannabis Control Board announced that it had awarded its first marijuana consumption lounge license. This announcement comes after the board approved a handful of these licenses over the last couple months.

The first to receive a lounge license was Thrive Cannabis Marketplace. Mitch Britten, CEO and managing partner of Thrive, stated that the company was honored to be at the forefront of the marijuana industry in Nevada through the official launch of the first regulated marijuana lounge in the state.

Britten revealed that the company had created a unique destination for marijuana enthusiasts to enjoy an assorted range of premium products in an engaging atmosphere. The lounge, dubbed Smoke and Mirrors, will provide a curated selection of premium marijuana products, including infused beverages.

It is important to keep in mind that alcohol will not be offered on the premises in accordance with state law. The compliance board also issued a statement about the company, noting that it was the first lounge that was inspected by its agents and adhered to the stipulated regulations.

A conditional license was issued to Thrive in June of last year. The zoning commission from Clark County then issued the company a special use permit in September. The lounge was then inspected in February of this year, which enabled Thrive to obtain its operation license.

In addition, the Nevada Cannabis Control Board revealed that 19 lounges had received approval for conditional licenses thus far. Of this number, five are independently situated and 14 are attached to dispensaries. The first independently located consumption lounge to receive a license was LA Lounge LLC.

Thrive’s lounge will operate in what was once a strip club and may be launched by the end of February, if all goes well.

Tyler Klimas, former executive director of the cannabis control board, recently discussed marijuana consumption lounges on a Weed Wonks podcast. He talked about how this was an unknown space and noted that many businesses would be launched in the near future.

The other consumption lounge that received a conditional license, Planet 13, issued a statement on a possible date for its launch. Larry Scheffler, Planet 13 co-CEO, stated that the company’s objective was to create an extraordinary space for marijuana connoisseurs, novices, locals and tourists to enjoy marijuana while experiencing world-class entertainment. The Planet 13 lounge will have bong chandeliers, VIP booths and marijuana cocktails.

The third conditional license was granted to SoL Cannabis.

The launch of these consumption lounges is likely to be watched closely by cannabis companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) since their success is likely to be copied in other jurisdictions where legal sales of adult-use marijuana exist.

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420 with CNW — Republican Research Company Publishes Poll Showing Countrywide Support for Cannabis Legalization

A new poll has found that the majority of voters in America are in favor of cannabis being legalized in all states. The poll conducted by the Tarrance Group involved interviews with about one thousand voters. The interviews were carried out Jan. 3–4, 2024.

The poll determined that 57% of those who responded support nationwide legalization of marijuana. Of this number, 35% admitted to strongly supporting the change in policy. It also found that roughly 55% of GOP voters aged 55 and below supported the legalization of marijuana. In addition, 74% of Democrats aged 55 and below also admitted to supporting the drug’s legalization in all states. Among independent voters, 56% stated that they were in favor of countrywide legalization of marijuana.

It should be noted that various measures have been introduced in Congress that would allow states to make their own decisions concerning marijuana while putting an end to the federal criminalization of the drug.

In an interview, U.S. Cannabis Council’s Josh Glasstetter stated that the survey’s results demonstrated that bipartisan support for the federal legalization of marijuana was growing and a generational shift on marijuana was underway. He then noted that during this year’s election, younger voters who strongly supported legalization would be sought after.

Overall, 67% of voters 18 to 44 years of age say they support a countrywide model to legalize marijuana. This is significantly higher than 57% of those aged 45 to 64 and 47% of those aged 65 and older.

Poll results noted that 68% of President Joseph Biden supporters also favor the reform with 48% of GOP members who support Donald Trump sharing these sentiments. With regard to undecided voters, 50% also support the change in policy.

This poll’s results are similar to those from a separate 2023 survey, which determined that support for ending the federal prohibition of cannabis had hit a new high nationally, with 7 in every 10 Americans supporting the reform. A different survey by Lake Research Partners also found that President Biden stood to make great political gains if cannabis was rescheduled under his administrative directive.

The survey was commissioned by the Coalition for Cannabis Scheduling Reform. The survey comes after the U.S. Department of Health and Human Services completed its scientific review in 2023 and gave its recommendation that marijuana be rescheduled. Despite this recommendation, the matter can only be decided by the DEA.

The drug’s rescheduling may not completely phase out the illicit market, however, Another poll found that nearly one-third of cannabis consumers would return to the illicit market if the drug was rescheduled and then made available solely as an approved prescription drug under the FDA.

The evolving regulatory landscape in the United States is being closely watched by companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) so that these companies can quickly ascertain how any changes made could impact their operations.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Ohio Governor Urges Lawmakers to Enable Adult-Use Cannabis Sales

Ohio Governor Mike DeWine has urged state lawmakers to enable recreational marijuana sales before the end of the year. During a recent interview with newspaper editors, Gov. DeWine said that although Ohio voters approved a measure to legalize recreational cannabis in late 2023, recreational sales won’t begin until the end of 2024.

The governor noted that Ohio is in a sort of “goofy situation” where recreational cannabis consumption and cultivation are legal, but the state still hasn’t approved retail locations to sell adult-use marijuana. As a result, black-market sellers are stepping in and taking advantage of the market gap to sell unregulated cannabis to often unsuspecting consumers.

The Republican governor called the situation a “real mess” and called on the Republican-controlled legislature to take action and remedy the issue by granting the authority to start selling legal adult-use cannabis in the state. He suggested that the state could start by allowing adult-use cannabis sales through medical marijuana dispensaries with the possibility of launching sales around 60 days after a legislature-passed initiative.

DeWine has already expressed support for a recreational cannabis regulation bill that was passed by the Senate in December and is still waiting for action by House legislators.

According to DeWine, gaining the support of both the Senate and House will be critical to starting a conversation about legal adult-use cannabis sales and working on a bill to facilitate legal sales.

Ohio became the 24th state in the U.S. to legalize recreational cannabis after voters approved Issue 2 in the November 2023 ballot. Issue 2 allowed adults aged 21 years and older to possess up to 2.5 ounces of cannabis flower and 15 grams of marijuana extract. Eligible adults can also grow up to six cannabis plants in households with one adult and up to twelve plants in homes with more than one eligible adult.

DeWine is adamant that Ohio lawmakers advance legislation as soon as possible and ban the purchase of intoxicating hemp products as the legislature comes back into session this year.

The cannabis black market is a problem that affects most states with legal markets, including California, which is currently the largest cannabis market on the globe. DeWine is keen on avoiding the issue before Ohio’s adult-use industry launches.

Such a bill would allow regulated retailers to begin selling recreational cannabis “on a controlled basis,” DeWine says, and would allow the state to launch adult-use sales quickly through medical marijuana centers.

Operators in more mature cannabis markets, such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF), will be watching to see how Ohio navigates its entry into the fast-growing recreational marijuana industry.

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420 with CNW — States with Legal Marijuana Markets See Higher College Applications

New data shows that states that have legalized recreational cannabis recorded a short-term boost in college applications from prospective students. The colleges also received more applications overall. The data was collected in a study, which had its findings recently published in the “Contemporary Economic Policy” journal.

The researchers used the Integrated Postsecondary Education Data System to obtain data on various college metrics, including detailed tuition prices prior to and after financial aid applications, school application numbers and demographic characteristics of students.

The study determined that applications for colleges in states the year that recreational cannabis was legalized increased by more than 5%. It should be noted that the results controlled for tuition prices, school quality and conditions in the labor market, which could affect decisions on student applications.

The researchers also determined that the biggest schools had the strongest gains, observing a 54% rise in applications as compared to similarly sized institutions in states that had not legalized recreational cannabis. Additionally, public universities and colleges benefited more in comparison to private institutions. This is despite the fact that applications for private institutions increased in legal states.

These findings matter because they demonstrate that states legalizing recreational marijuana may benefit institutions of higher learning. Increased applications also afford schools a larger and a higher-achieving pool to select students from and may help improve an institution’s academic profile.

The study’s results fit into a bigger body of research examining what affects student choices when it comes to college applications.

The researchers determined that, similar to how institutions recorded an increase in SAT scores and applications when they had good sports teams, institutions recorded increases when they were located in legal states. The data suggests that students may factor local policies into their choices during college applications.

Team members also analyzed state laws to determine when recreational cannabis would be available to students, noting that as long as recreational cannabis was legally available before the end of January, which is when most applications were due, cannabis could probably impact the application decisions of prospective students.

Despite all these findings, the researchers still cannot ascertain why freshmen who often come straight from high school and haven’t attained the legal age to consume recreational cannabis might base their decisions on the drug’s availability. Additionally, the researchers cannot identify with clarity the portion of applications that come from out-of-state students and helps drive applications following legalization. The researchers are now focused on examining how legalized cannabis affects student outcomes for all learning institutions.

As more studies are done on how the wider community is impacted by cannabis legalization, it could emerge that legal sales from licensed operators such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) may have more socioeconomic benefits than initially thought.

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420 with CNW — Lawmakers in Wisconsin Introduce Bill to Decriminalize Marijuana

Wisconsin may be the latest state to pass cannabis reform measures after a bipartisan group of lawmakers formally introduced a proposal to decriminalize cannabis possession in late December. First previewed in early December, the noncommercial and relatively limited reform may garner enough support to advance past Wisconsin’s GOP-controlled legislature.

The marijuana decriminalization measure was introduced by Representatives David Considine, Sylvia Ortiz-Velez and Shae Sortwell alongside Senator Lena Taylor. Assembly Bill 861 would remove criminal penalties such as jail time for cannabis-related offenses, such as simple possession of up to 14 grams of marijuana, and replace criminal charges for cannabis offenses with a $100 civil penalty.

Current Wisconsin law criminalizes cannabis possession and punishes the offense with a maximum of six months in jail and a $1,000 fine.

The proposed decriminalization measure would also eliminate the need for people charged with cannabis possession to appear in court and replace it with a simple $100 fine. Additionally, the decriminalization measure would stop Wisconsin courts from counting cannabis possession convictions that involve up to 28 grams of cannabis. This means Wisconsin residents would never again be charged as repeat offenders for possessing small amounts of marijuana.

The measure also reduced penalties for repeatedly possessing larger amounts of cannabis from three and a half years imprisonment to 90 days. Individuals charged with drug paraphernalia possession will be liable to a $10 civil forfeiture fine down from as much as 30 days in jail and a $500 fine.

According to a censorship memo released by the measure’s sponsors, Wisconsin should not be imprisoning its residents for simply possessing small amounts of cannabis. On average, Wisconsin makes 15,485 arrests for minor cannabis possession and punishes simple possession suspects with up to six months in jail and a maximum $1,000 fine. The proposed measure would also grant law enforcement more flexibility on how they choose to deal with individual cannabis possession cases. This includes deciding whether or not to book and process individuals for simple cannabis possession or simply collecting certain personal information.

The measure would also reduce the liability of employers who choose not to test their employees for THC. However, these workplace testing provisions would not apply to jobs involving security and safety or those overseen by the federal Department of Transportation. The sponsorship memo noted that employers are increasingly choosing to forgo cannabis tests because they can be costly.

Assembly Bill 861 will head to the Assembly Committee on Criminal Justice and Public Safety.

If this reform movement results in the eventual legalization of cannabis, it could lead existing companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) to weigh whether or not to expand their footprints into those new markets.

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420 with CNW — Florida GOP Senator Files Medical Cannabis Bill for 280E Relief

Last week, a senator in Florida introduced a measure that would allow licensed medical-cannabis businesses to claim tax deductions. At the moment, legal marijuana businesses in the country aren’t allowed to claim deductions because of section 280E of the IRS code, which bars deductions from being claimed for illicit substances.

Section 280E prohibits businesses from deducting business expenses from gross income linked to the trafficking of Schedule I or II drugs. Currently, marijuana is still classified under Schedule I of the Controlled Substances Act. The measure, filed by GOP senator Ana Maria Rodriguez, would add Florida to a growing list of other states that have established tax parity for the marijuana industry.

The bill would amend the state’s tax code by permitting medical-marijuana operators to claim deductions in amounts equal to expenditure eligible to be claimed as federal income tax deductions. It should be noted that this measure would only extend relief to state medical-marijuana businesses.

Other states that have taken similar steps include Pennsylvania, whose House passed a sweeping tax reform measure in October containing language offering state relief to medical-cannabis businesses. The proposal hasn’t been fully accepted by GOP members, who see it as a giveaway by Democrats to the marijuana industry.

In November, New York’s governor signed a measure offering tax relief to cannabis businesses in the state. This comes after a budget measure enacted in 2022 included provisions to broadly permit state-level marijuana business tax deductions. Maine’s governor had, in August, signed a resolution decoupling state tax from the federal policy for marijuana businesses.

Earlier in June, Connecticut’s governor signed a budget measure that included provisions offering state-level tax relief to licensed cannabis businesses as a workaround for the industry. That same month, the governor of Illinois signed a budget measure that included provisions permitting licensed cannabis businesses to claim tax deductions that they’re currently barred from utilizing under Section 280E. In May, the governor of New Jersey also signed a bill that would permit licensed cannabis businesses to deduct some expenses on their tax returns as a partial fix.

At the congressional level, Representative Earl Blumenauer reintroduced a measure that would amend the code to permit state-legal cannabis businesses to claim tax deductions that are available to businesses operating in other industries. In an interview, Blumenauer explained that allowing state-legal businesses to fully deduct their business expenses would result in additional revenue collection because individuals would comply with the law.

This growing wave of states seeking ways to give the cannabis industry tax relief at the state level could afford enterprises such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) a breather that allows them to bring more innovative products to the market.

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420 with CNW — Data Shows Arizona Exceeded $1B in 2023 Cannabis Sales in September

September saw Arizona’s marijuana sales surpass $1 billion for the year following a pattern that both recreational and medical markets seemed to have stabilized over the previous few months. The state’s revenue department (ADOR) data for August and September reveals a consistent pattern, with medical sales remaining around one-third of recreational sales.

September’s medical sales were marginally below $27 million, down from $28.7 million in August. This represents the lowest in medical sales since the legalization of recreational marijuana in 2021. The last time medical sales surpassed $30 million was in June, and they have been consistently declining from the peak of $73.4 million in April 2021.

Contrastingly, recreational sales have remained robust, consistently surpassing $80 million since dropping below $90 million in May. August reported recreational cannabis sales at $85.8 million, followed by slightly more than $80 million in September. The recreational market has only failed to reach the $80 million mark twice —in May and June of 2022 at $79.3 million and $77.2 million, respectively.

However, those figures could alter because ADOR often modifies the figures from previous months with new reports. For example, the most recent announcement from ADOR raised July’s medical sales from $26.1 million to $27.3 million, while recreational sales changed from $77.4 million to $80.5 million.

As of September 2023, total medical marijuana sales for the year reached $267 million, while recreational sales amounted to nearly $797 million, culminating in a year-to-date total of almost $1.1 billion. Since the commencement of recreational cannabis sales in 2021, the industry has generated more than $4 billion, with approximately $2.5 billion attributed to adult-use sales.

The state has collected substantial taxes from both sectors, with $2.2 million and $2.4 million from medical cannabis sales in September and August, respectively, and $12.8 million and $13.7 million from recreational sales. Arizona applies a standard sales tax of 5.5% and a 16% excise tax on recreational sales. Medical patients only foot the standard 5.5% sales tax. Local jurisdictions add roughly 2% to all cannabis sales.

Around $174.5 million has been collected thus far in 2023 from the recreational sales excise tax. In 2021, recreational marijuana generated $33 million, and in 2022, the figure surged to $132.7 million. Since recreational cannabis legalization, the state has amassed more than $392 million in cannabis excise taxes.

The tax revenues are allocated to various sectors: 10% goes toward the justice reinvestment fund, which supports communities disproportionately impacted by cannabis criminalization; 34% goes toward community colleges; 31% goes toward public safety; and 25% goes to the Arizona Highway User Fund.

There were 121,047 qualified cannabis patient cardholders as of October 2023, compared to 123,795 in September. Before the introduction of recreational cannabis, there were 299,055 qualifying patients. The report also noted that 4,475 pounds of cannabis were purchased for medical purposes in October, down from 4,622 in September, bringing the total for the year as of October to 47,076 pounds.

The thriving marijuana industry in Arizona in a way depicts what is happening in many markets in which regulated cannabis sales are allowed and companies such as TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) obtain licenses to commercialize innovative cannabis products.

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