Medical marijuana sales have generated about $27 million in state sales taxes and an estimated $7 million in local sales taxes since Arkansas' first legal sale of the drug in May 2019, according to information provided by the state revenue agency.
Through January, the 6.5% state sales tax levied on medical marijuana sales raised $13.28 million. The 4% special privilege tax all medical marijuana sellers are required to collect and remit raised $13.51 million. A bill extending the sunset date set by the 2017 law enshrining the latter tax was presented to the governor Monday.
Senate Bill 465 extended the tax's sunset date through the state fiscal year that ends June 30, 2023. A 2019 law made the University of Arkansas for Medical Sciences a beneficiary of the tax, the proceeds of which are helping UAMS achieve a National Cancer Institute designation.
The Department of Finance and Administration said local sales taxes levied on medical marijuana sales have raised about $7 million for cities and counties.
"While we don't have specifics on local sales tax generated from medical marijuana purchases, a very conservative estimate would be at least $7 million collected," DFA Communications Director Scott Hardin said.
The 32 dispensaries in operation reported $258 million in sales from 39,039 pounds sold through March 11, according to the sales report DFA released earlier this month. They averaged almost $700,000 in daily sales during the 23-day reporting period that ended March 11.
DFA said six more license holders are in the process of opening dispensaries. The Medical Marijuana Commission has awarded 38 of the 40 dispensary licenses permitted by the state constitutional amendment voters approved in 2016.
The Arkansas Department of Health said as of Saturday, 71,227 Arkansans had an active patient card, a 7% increase from mid February.
Suite 443, one of two licensed dispensaries in Garland County, ranked third in sales during the reporting period that ended March 11, reporting 168.41 pounds sold. The Malvern Avenue location has ranked in the top five for six-straight reporting periods.
Green Springs Medical, the only licensed dispensary within the city limits of Hot Springs, ranked 11th during the reporting period that ended March 11, reporting 97.76 pounds sold. It ranked 11th during the 36-day reporting period that ended Feb. 16 and 12th during the four previous reporting periods.
The Tax Procedure Act prohibits the state from releasing revenue figures for individual dispensaries. In aggregate, they reported $16 million in sales during the 23-day period that ended March 11.
The 252.25 pounds in sales The ReLeaf Center reported ranked first. The Bentonville location has led eight out of the last nine sales reports and holds the overall sales lead, reporting more than 4,200 pounds sold since its August 2019 opening.
Natural Relief's 198.69 pounds in reported sales ranked second during the reporting period that ended March 11. The Sherwood location also ranked second during the 36-day reporting period that ended Feb. 16. Plant Family Therapeutics in Mountain Home ranked fourth during the most recent reporting period, reporting 163.96 pounds sold.