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AZ

AZDHS

Active market

Arizona DHS-aware dispensary platform

Built for the Arizona dual-use operator who’s lost money to a POS that flattened the medical/adult-use MET split. AZDHS rules native — and since Arizona mandates no specific seed-to-sale system, your POS has to BE the defensible record: full acquire, dispense, transfer, disposal, and audit history. Plus 16% MET on adult-use only (medical exempt) and the 5.6% state TPT + city/county stack near ~25% combined. The medical patient-card path saves patients money — we charge it right the first time.

Regulator

Arizona Department of Health Services (AZDHS)

https://www.azdhs.gov/licensing/marijuana
We re-check this regulatormonthly— stable rules, low expected churn

Statutes that bite

CitationSubject
ARS Title 36, Ch. 28.2Smart and Safe Arizona Act (Prop 207, adult-use)
ARS Title 36, Ch. 28.1Arizona Medical Marijuana Act (AMMA, Prop 203)
AAC R9-18AZDHS adult-use marijuana program rules
AAC R9-17AZDHS medical marijuana program rules
ARS §42-545216% Marijuana Excise Tax (MET) on adult-use retail

Tax stack

Excise

16% adult-use Marijuana Excise Tax (MET) on retail sales (ARS §42-5452). Medical patient sales exempt from MET — only TPT applies.

Sales / Use

5.6% Arizona Transaction Privilege Tax (TPT) — applied to both adult-use and medical retail sales on top of MET.

Local option

City + county TPT add-ons typically 1.5% to 4% — resolved from our per-jurisdiction rate table (AZDOR TPT rate tables, every rate carries its source + effective date) and confirmed with you at onboarding; a jurisdiction we don’t have on file requires explicit rate confirmation before the register charges it, never a silent default. Phoenix metro stack often ~9% combined TPT, on top of the 16% MET = ~25% effective on adult-use.

Compliance topics surfaced in-platform

  • Age 21+ adult-use / 18+ medical patient ID verification with split lanes (medical card cuts MET — split is real-money)
  • No state-mandated track-and-trace — the POS is the seed-to-sale system of record: complete acquire/dispense/transfer/disposal history + audit trail (AZDHS confirmed no Metrc or specific-program requirement)
  • Mandatory pre-dispense medical patient verification (AZDHS MLMS) — a hard, fail-closed gate before any sale on the medical lane, not a soft lookup. The patient registry must clear before the line rings. Out-of-state cards cannot buy as medical patients in Arizona.
  • Medical possession is a 2.5 oz rolling 14-day limit — stateful across visits, so the counter carries between transactions, not just within one. Adult-use is 1 oz per transaction (no more than 5 g of that as concentrate).
  • Dual-license vertical-integration enforcement (AZ requires retailers to also hold cultivation/processing — track license-class boundaries)
  • Daily inventory reconciliation export shaped for AZDHS record-keeping

What ships on day-1 for AZ

  • Adult-use + medical product lanes with separate tax stacks (16% MET on adult-use only — medical patient cards trigger an automatic MET-exempt path; the line that incumbents flatten and quietly over-charge medical patients)
  • 5.6% state TPT + city/county TPT stack from our per-jurisdiction rate table (AZDOR-sourced, confirmed with you at onboarding; Phoenix metro is ~9% TPT alone — surface it explicitly, don’t bake-it-in). A jurisdiction we don’t have on file requires explicit confirmation — we never quietly fall back to state-only
  • Seed-to-sale system of record built in — since AZ mandates no external traceability vendor, inventory movements + sale draw-downs + disposal are tracked and audit-exportable in-platform
  • Vertical-integration license-class flagging (cultivation/processing/retail) — Arizona’s dual-license topology lets POS skip license-class boundary checks; we don’t
  • Daily reconciliation report (auto-runs at close)
  • Manager write-up assistant configurable to AZ labor + AZDHS rule taxonomy

We serve here — honestly

We don’t operate stores in Arizona. We do follow AZDHS bulletins, the medical-vs-adult-use MET split, the dual-license vertical-integration topology, and the city/county TPT stack accuracy. Arizona mandates no specific seed-to-sale system (AZDHS confirmed to us directly), so we treat the POS as your defensible system of record — same compliance discipline we apply to WSLCB, and we’ll say it directly when something’s off.

Operator playbooks

Arizona cannabis retail — common questions

Who regulates cannabis retail in Arizona?
Arizona Department of Health Services (AZDHS) is the state cannabis regulator for Arizona. Official site: https://www.azdhs.gov/licensing/marijuana.
What seed-to-sale track-and-trace system does Arizona use?
Arizona does not mandate a specific seed-to-sale vendor system — but licensees must still be able to track acquire, dispense, transfer, dispose, and audit. In a no-mandate state the POS itself is the defensible system-of-record, which is exactly what CannAgent provides.
What cannabis taxes apply to retail in Arizona?
16% adult-use Marijuana Excise Tax (MET) on retail sales (ARS §42-5452). Medical patient sales exempt from MET — only TPT applies. 5.6% Arizona Transaction Privilege Tax (TPT) — applied to both adult-use and medical retail sales on top of MET. City + county TPT add-ons typically 1.5% to 4% — resolved from our per-jurisdiction rate table (AZDOR TPT rate tables, every rate carries its source + effective date) and confirmed with you at onboarding; a jurisdiction we don’t have on file requires explicit rate confirmation before the register charges it, never a silent default. Phoenix metro stack often ~9% combined TPT, on top of the 16% MET = ~25% effective on adult-use.
Is CannAgent available for Arizona dispensaries?
Yes — Arizona is a featured onboarding market. The AZDHS-aware POS and back office is available now; request a scoped demo at /demo.

Other states

See it on your AZ data.

30-minute demo on a sandbox shaped like your store. End the call with a fixed-scope quote and a AZ-aware cutover plan.

Request a demo
30 min · demo login emailed in ~60 sec · no call required