Marijuana dispensaries immediately liable for TPT and MET taxes upon licensing

Steps toward legalizing Recreational Marijuana
Steps toward legalizing Recreational Marijuana(KFVS)
Updated: Jan. 29, 2021 at 4:10 PM MST
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TUCSON, Ariz. (KOLD News 13) - Proposition 207 was approved during last year’s General Elections, and just last week licensed dispensaries across the state of Arizona began selling recreational marijuana.

According to the Arizona Department of Revenue, once businesses are issued a license to legally sell recreational pot, they must register with the department so that the state can start collecting transaction privelege (TPT) and marijuana excise taxes (MET).

The department says businesses selling the recreational drug are liable for these taxes immediately upon being licensed.

To apply for a license to report TPT, excise and withholding tax, dispensaries must complete the Medical, Adult Use or Dual License Transaction Privilege/Use/Excise Tax Application (Form JTM-1) and email it to AZTaxHelp@azdor.gov.

If a business already holds a TPT license, it must contact ADOR to make the necessary changes to the license that will allow it to file and pay taxes on sales of marijuana products. 

According to ADOR, businesses will not be able to properly report their taxes without first contacting the department.

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