Medical marijuana tax collections top $32 million, up 7% July 7, 2022 By Griffin Coop The Arkansas medical marijuana industry generated more than $32 million in taxes during the state’s fiscal year that ended last month, according to records from the state Department of Finance and Administration. The state collected $16,072,862 through the state’s 6.5% sales tax and $16,056,734 through the 4% privilege tax that is charged on dispensaries’ purchases from cultivators. The total of $32,129,596 is a 7% increase over the tax collections in the previous fiscal year. Patients pay the 6.5% state sales tax and 4% privilege tax on each purchase. Dispensaries also pay the 4% privilege tax, which the state legislature approved in 2017. The revenue from the state sales tax supports the three agencies that regulate the medical marijuana industry: the Medical Marijuana Commission, which issues licenses; the Alcohol Beverage Control Division, which regulates the industry; and the Arkansas Department of Health, which issues patient cards. The revenue from the privilege tax goes toward the University of Arkansas for Medical Sciences’ effort to achieve a National Cancer Institute designation.
