May 4, 2023 - Business
Northwest Arkansas' first quarter medical marijuana sales growth
Add Axios as your preferred source to
see more of our stories on Google.
The four medical marijuana dispensaries in Benton and Washington counties sold a combined 2,361 pounds during the first quarter of the year — about 17% of the total sold statewide.
Why it matters: Arkansas collects 6.5% tax revenue on medical marijuana sales, which goes to support schools, infrastructure and other state government activities.
- An additional 4% privilege tax goes to the University of Arkansas for Medical Sciences, for the establishment of a national cancer institute.
By the numbers: NWA's first quarter total is 6.3% lower than the same period in 2022 when five dispensaries sold 2,521 pounds.
- In October 2022, Osage Creek moved from Fayetteville to Eureka Springs in Carroll County, lowering the two-county area's dispensaries to four.
- Statewide, medical marijuana patients spent about $70.4 million on more than 13,800 pounds during the first quarter.
What they're saying: "State tax revenue from medical marijuana totaled $32 million in 2022," spokesperson for the Department of Finance and Administration, Scott Hardin, said in an email.
- $16.3 million came from the 6.5% sales tax and $15.7 million from the 4% privilege tax.
- Both taxes apply to patient purchases, but only the 4% privilege tax applies when a cultivator sells its product to a dispensary.