Arkansas: Marijuana Tax Handbook

Arkansas:

Arkansas Marijuana Tax Rate

Sales Tax Medical	Excise Tax Medical	Max Medical Tax	Sales Tax Recreational	Excise Tax Recreational	Max Recreational Tax
6.50%	4.00%	10.50%	N/A	N/A	N/A

2024 Arkansas Marijuana Tax Handbook

Arkansas patients are required to pay a 6.50% sales tax on every purchase of medical marijuana. There is also an additional excise tax of 4% on every purchase of medical marijuana.

Recreational marijuana is illegal in Arkansas, so there are no taxes for it.

About Arkansas Marijuana Tax

Under Section Ark. Code Art. 26-57-1504 a cultivation facility or dispensary must collect a special privilege tax of 4% from each sale of usable marijuana. This is in addition to the state sales tax of 6.5% for a total tax of 10.5%.

What is the most recent revenue statistic for Arkansas?

$31.6 Million as of March 31, 2021

A portion of the sales tax and special privilege tax on medical marijuana is designated for a trust fund to allow the University of Arkansas for Medical Sciences to obtain a designation by the National Cancer Institute. Another portion of the monies received from the tax revenue are credited to the Arkansas Medical Marijuana Implementation and Operations Fund and are then distributed to the Alcoholic Beverage Control Division, the Department of Health, the Medical Marijuana Commission Fund, and any other fund necessary to implement, administer, and enforce the program. Any monies left over are deposited in the General Revenue Fund.

Is the Arkansas Marijuana Tax Weight-Based or Percentage-of-price-Based?

Arkansas' marijuana program uses a Percentage-of-price tax system. This means that the tax charged is calculated using the retail price of the Marijuana at the time of purchase.