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AZ

AZDHS

Active market

Arizona DHS-aware dispensary platform

Built for the Arizona dual-use operator who’s lost real money to a POS that flattened the medical/adult-use MET split. AZDHS rules native — METRC traceability, 16% MET on adult-use only (medical exempt), 5.6% state TPT + city/county stack often pushing combined ~25%, and the dual-license vertical-integration topology AZ retailers operate under. The medical patient-card path actually saves your patients money — we charge it correctly 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. 28.1Smart and Safe Arizona Act (Prop 207, adult-use)
ARS Title 36, Ch. 28.1, Art. 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% — auto-derived per store address. 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)
  • METRC tag handoff + manifest reconciliation per AAC R9-18
  • Patient registry lookup hook (AZDHS Medical Marijuana Patient ID)
  • 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 derivation per store address (Phoenix metro is ~9% TPT alone — surface it explicitly, don’t bake-it-in)
  • METRC-shaped inventory + sale receipt mirror
  • 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. CannAgent ships AZ support with the same compliance discipline we apply to WSLCB — and we’ll say it directly when something’s off.

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.

Schedule a demo
30 minutes · register, write-up, Form 941