AZDHS
Active marketArizona 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 ↗Statutes that bite
| Citation | Subject |
|---|---|
| ARS Title 36, Ch. 28.2 | Smart and Safe Arizona Act (Prop 207, adult-use) |
| ARS Title 36, Ch. 28.1 | Arizona Medical Marijuana Act (AMMA, Prop 203) |
| AAC R9-18 | AZDHS adult-use marijuana program rules |
| AAC R9-17 | AZDHS medical marijuana program rules |
| ARS §42-5452 | 16% 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
Compliance ops playbook
State traceability reconciliation — the daily, weekly, monthly discipline
Buyer scorecard
Picking a cannabis POS: the 7-question scorecard
Migration playbook
POS migration: a 4-week playbook for cannabis dispensaries
Operations deep-dive
Cash discipline at a cannabis dispensary: variance, escalation, audit
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
Washington
Colorado
California
Oregon
Michigan
New Jersey
New York
Massachusetts
Illinois
Missouri
Nevada
Maryland
Oklahoma
Connecticut
Maine
Rhode Island
New Mexico
Vermont
Minnesota
Delaware
Alaska
Montana
Ohio
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.