How to Get a Cannabis Business License in Arizona


Get the latest information on how to get a cannabis license in Arizona, after passing new marijuana laws, Prop 207 by 60 to 40% of the vote in November, 2020 Arizonians will be able to apply for a cannabis business license and start operating in the state very soon.

The Department of Health Services is in charge of overseeing the adult-use cannabis program in Arizona, and must adopt rules to set the application process, number of business licenses available and more

Arizona’s regulations are still in the process of being drafted, so we can expect many updates on marijuana legalization in Arizona in the following months.

When are Cannabis Business Licenses Applications Open in Arizona

Arizona takes effect once the election results are made official Nov. 30 2020

The early applications for cannabis business licenses will be accepted from January 19th, 2021 to March 9th, 2021, after issuing the license to the early applicants the department will issue establishment licenses by random selection.



What is an “Early Applicant” in Arizona Marijuana?

An early applicant is an entity seeking to operate a marijuana establishment in a county with less than two registered nonprofit medical marijuana dispensaries, or a non-profit medical marijuana dispensary registered and in good standing with the department that wishes to obtain an establishment license.

The early applicants have the advantage of being the first ones to submit applications and to be granted the adult-use cannabis business license

Types of Cannabis Business Licenses to Apply in Arizona: 

You can apply for two different types of cannabis business licenses in Arizona:

  • The Marijuana establishment license: That authorizes to have a single retail location to sell, a single off site location to cultivate, process and produce and a single off site location to manufacture and package marijuana, the last two are not authorized to sell Marijuana in any manufacturing or cultivating location.
  • The Marijuana testing facilities license: That authorizes the analysis and monitoring of the potency of the product and testing for any harmful contaminant in the marijuana.

Social Equity Program in Arizona

The Social Equity Ownership Program aims to increase the license numbers up to 10 % in furtherance of social equity programs created by the Department of Health Services, to promote the ownership and operation of marijuana establishments and marijuana testing facilities by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws.

Marijuana Delivery Business in Arizona

Delivery of marijuana in Arizona, understood as transportation of marijuana to a consumer at a location other than the designated retail location, is considered unlawful, until the Department of Health Services regulates this subject matter, which is directed to adopt regulations for home delivery by January 2023, not after January 2025.

What are the number of business licenses allowed for the Cannabis industry in Arizona?

The Department of Health Services must adopt rules to set the number of licenses coming – but not more than one for every 10 pharmacies operating within the state.

The Department will only issue two Marijuana Establishment License per county as long as it does not contain a non profit medical marijuana dispensary, if it contains one registered non profit medical marijuana dispensary, it will only issue one.

Around 150 marijuana establishment licenses will be granted. Of these licenses, 26 will be specifically allocated to applicants who qualify under the Social Equity Ownership Program.

Taxes in Arizona for Marijuana

Marijuana would be subject to sales tax rate of 5.6%, plus 16% excise tax. The money from the excise tax would be used to fund the Department of Health Services and the department of Public Safety to ensure the implementation of the law.

The remaining would be distributed among community college districts, fire and police departments and other grants or programs that support public health.

How Can i Start Preparing My How To Get a Cannabis Business License in ArizonaCannabis Business License Application

First of all, you need the right cannabis business plan. As part of the program, you will clarify what kind of dispensary you want to open, how long you plan to operate in Arizona , and what the main points of your business are.

If you are starting your cannabis business and want more focus, we recommend our pitch deck course, it would be a great opportunity for you to start envisioning your cannabis dispensary.

When applying for a cannabis license in Arizona or any state, the most important part of the process is going with the regulations when it comes to the application form. It is always smart to consult an attorney about the regulations in a specific state.

Not all the laws are the same across the US states, but most of them fall under the same category. Application requirements, data required, and specific information about your business should always be in hand when you apply for a dispensary license.

Alson, pay attention to municipal regulations, some cities will have rules that can be more beneficial or very restrictive for your business. Be sure you are assisted when choosing your location

If you are not sure how to make your application complete, you can contact the right attorney who will help you create the right plan for your application process when you want to open a cannabis dispensary in Arizona.


Home grow in Arizona?

  • YES, 6 plants, Max 12 for homes with 2 or more adults

Social Equity in Arizona Cannabis Laws?

Bare Minimum Criteria Towards Restorative Justice:

  • Expungement? YES
  • Social Equity Provisions? YES
  • Portion of Taxes Allocated to Impacted Communities? YES
  • 26 licenses will be issued to entities under the Social Equity Ownership Program
  • 10% of taxes will be allocated to the Justice Reinvestment Fund (JRF)

Cannabis Possession Rules in Arizona

  • 1 ounce flower or 5 grams concentrate

Licenses Available in Arizona:

  • The Marijuana establishment license

Don’t miss out on our Marijuana Legalization Map where you can browse the current status of laws in every state in the United States and see all our posts on each of them.

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Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.
Homegrown Cannabis Co's Cannabis Seeds


Licensed to practice since 2008, Thomas Howard has represented numerous financial institutions in litigation to enforce their security interests.

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