§ 42-5452 — Levy and rate of tax; effect of federal excise tax

(Caution: 1998 Prop. 105 applies)

A. There is levied and the department shall collect an excise tax on all marijuana and marijuana products sold to a consumer by a marijuana establishment at a rate of sixteen percent of the price of the marijuana or marijuana product sold. This subsection does not apply to marijuana dispensed to a registered qualifying patient or registered designated caregiver pursuant to title 36, chapter 28.1 by a dual licensee or nonprofit medical marijuana dispensary.

B. If the United States levies and collects an excise tax on marijuana and marijuana products, the aggregate of federal and state excise taxes may not exceed a rate of thirty percent of the price of the marijuana or marijuana product sold, and the tax levied pursuant to subsection A of this section shall be lowered accordingly and automatically on the effective date of the federal excise tax.

C. A product subject to the tax imposed by this section may not be bundled with a product or service that is not subject to the tax imposed by this section.

D. The tax levied and collected pursuant to this section shall not be included in computing the tax base, gross proceeds of sales or gross income of a marijuana establishment for purposes of title 42, chapters 5 and 6, and is not subject to any transaction privilege, sales, use or other similar tax levied by a county, city, town or special taxing district.

E. Notwithstanding section 42-3102, the department shall deposit all monies levied and collected pursuant to this section in the smart and safe Arizona fund established by section 36-2856.