Arkansas Cannabis Market: Legalization
The Arkansas Medical Marijuana Amendment, also known as Issue 6, was approved on November 8, 2016. The application period for dispensaries and cultivation facilities began on June 30th, 2017 and runs until September 18th, 2017. The commission has said it will issue 32 licenses for dispensaries and five for cultivation facilities.
In 2021, Arkansas medical marijuana program began offering new business licenses: processor and transporter.
Arkansas Cannabis Licenses: Fees and Taxes
Surety bond | Cultivator – Applicants shall provide proof of assets or a surety bond in the amount of $1,000,000, and proof of at least $500,000 in liquid assets. Dispensary – Applicants shall provide proof of assets or a surety bond in the amount of $200,000 and proof of at least $100,000 in liquid assets. |
Application | Cultivator – $15,000 Dispensary – $7,500 Processor – $5,000 Transporter – $5,000 |
License | Cultivator – $100,000 (new); $100,000 (renewal) Dispensary – $15,000 (new); $22,500 (renewal) Processor – $5,000 (new); $5,000 ( renewal) Transporter – $5,000 (new); $5,000 ( renewal) |
Performance bond | Cultivator – $500,000 Dispensary – $100,000 Processor – $100,000 Transporter – $100,000 |
State tax requirements | 4% tax on all medical marijuana transactions |
Arkansas Cannabis Market: Stats and Projections
The first dispensary in Arkansas opened on May 11, 2019. Arkansas officials were anticipating that between 30,000 and 50,000 residents, up to 1% of the population will participate in the medical cannabis program three to five years after the first dispensaries open. The Program exceeded expectations in its second year and as of February 2024, there have been registered 95,626 medical cannabis patients in the state.
Arkansas medical cannabis dispensaries sold over 5,904 pounds of cannabis totaling of about $40 million in the first 10 months. In 2021 medical cannabis sales in Arkansas surpassed $265 million with 40,347 pounds of medical cannabis sold by 37 dispensaries according to the state Department of Finance and Administration compared to $175 million in sales with 26,000 pounds of product in 2020.
In 2022, patients spent $276.3 million to obtain 50,547 pounds of medical cannabis.
In 2023, medical cannabis sales totaled about $283 million with more than 62,000 pounds of medical cannabis sold by 38 dispensaries. There are 8 cultivators and 9 processors in the state. The Arkansas medical cannabis program passed the $1 billion mark in cumulative sales last year.
According to Marijuana Business Factbook, annual sales could hit $365 million by 2025.
Arkansas Cannabis Market Infographics
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