Prohibitionists seek to eliminate commercial adult-use sales on the 2026 ballot

Prohibitionists are engaged in a well-funded push to roll back cannabis freedoms across the nation. Arizona is one of three states where an initiative to re-criminalize adult-use cannabis sales has been filed. The Grand Canyon state now joins Massachusetts and Maine, where prohibitionists are also trying to reverse progress via ballot measures this November.

The so-called “Sensible Marijuana Policy Act of Arizona” would send all adult-use cannabis sales to the unregulated, illicit market. Prohibitionists need 255,949 valid signatures by July 2, 2026, to place the repeal measure on the November 2026 ballot.

This proposal would repeal a substantial portion of the Smart and Safe Arizona Act (Prop 207) that voters passed in 2020. While the measure would not change the legality of home cultivation and possession by adults 21 and older, all adult-use commercial sales of cannabis would be prohibited.

This calculated effort also comes with sizable financial backing. On December 19, the committee chair told the Arizona Capitol Times that the campaign expects to spend $5 million on signature gathering in the state, with an additional $10 to $20 million planned for the campaign. If prohibitionists succeed, the re-criminalization of the adult-use market would become law on January 1, 2028. Read more about the initiative here.

Make sure you’re signed up for MPP’s email alerts so we can keep you posted on efforts to defeat this reckless measure, which would drive consumers to the unregulated illicit market and deprive the state of more than $250 million in tax revenue each year.

Arizona’s cannabis legalization has generated over $1 billion in tax revenue

In 2020, 60% of Arizona voters approved Proposition 207 (the Smart and Safe Act) to legalize and regulate cannabis for adults. Legalization has been a substantial revenue stream for the state. Since legalizing, Arizona has generated more than $1 billion in excise taxes and transaction privilege taxes, including more than $250 million in 2024 alone.

Proposition 207 allows adults to possess up to one ounce of cannabis and to possess up to six mature plants at home. Since November 1, 2024, Arizonans have been allowed to get cannabis delivered to their doorstep. Cannabis sales are subject to the normal sales tax rate of 5.6% in addition to a 16% excise tax. The excise tax revenue is used to support regulation by the Arizona Department of Health Services and Department of Public Safety. The remaining revenue is split among the following: community colleges (33%), police and fire departments (31.4%), the state highway fund (25.4%), a justice reinvestment fund (10%), and the attorney general for enforcement (0.2%).

Expungement proceeding, but limited

Arizona residents with minor cannabis convictions can apply to have their records expunged. Individuals with convictions of possessing, transporting, or consuming 2.5 ounces or less of cannabis are eligible to have their records expunged. People with convictions for possessing, cultivating, and transporting up to six cannabis plants at their primary residence can also apply to have their records cleared. Individuals with convictions for possession, use, or transportation of paraphernalia are also eligible for expungement.

Arizona's expungement law is a petition process and not automatic, which means it is the responsibility of those with convictions to seek relief. To help provide relief to more individuals, the University of Arizona School of Law launched an expungement clinic to help people through the process. You can find more information on the clinic here.

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