1. 16% excise plus TPT, reported monthly
What AZ requires: Arizona charges a 16% Marijuana Excise Tax on the retail price of adult-use cannabis, on top of the 5.6% state Transaction Privilege Tax plus county and city rates, roughly a 21.6% base before local add-ons. Medical cannabis is subject to TPT but exempt from the 16% excise. Retailers register with the Department of Revenue for both a TPT and an excise license, and the MET-1 excise return is filed and paid monthly, due the 20th, covering inventory changes across both adult-use and medical.
What SellStack does natively: SellStack's native tax engine applies the 16% excise, the 5.6% TPT and local rates, and the medical exemption automatically at the point of sale, and keeps the adult-use and medical figures the monthly MET-1 needs coming off one ledger.
What this means for your operations: You stop assembling the monthly MET-1 by hand from separate systems, and a rate change is a configuration update, not a spreadsheet project.
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2. Vertically integrated, dual-licensed
What AZ requires: Arizona consolidates operations under a single Marijuana Establishment License covering the full vertical chain: cultivation, processing, and retail. Legacy medical dispensaries can add adult-use privileges to become dual licensees, selling both medical and adult-use from the same location, and licensing is capped at roughly one establishment per ten registered pharmacies.
What SellStack does natively: SellStack runs the full vertical chain, cultivation through processing to retail, on one ledger, and handles the dual medical and adult-use operation from a single location as one system of record, so product, tax treatment, and records stay attributable across the chain.
What this means for your operations: Your vertically integrated, dual-licensed operation runs on one ledger instead of separate systems per stage, and the medical and adult-use sides stay cleanly distinguished where it matters, at tax and at records.
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3. No state track-and-trace. Your ledger is the system of record.
What AZ requires: Arizona is an exception among legal states: it runs no state-mandated seed-to-sale system, not Metrc and not BioTrack. Each establishment must operate its own tracking for all product from cultivation through sale, retain records for years, and self-report, with compliance enforced through monthly MET-1 reporting to the Department of Revenue and ADHS inspection. The operator's own inventory data is the system of record, with no state platform as a backstop.
What SellStack does natively: SellStack delivers lot-aware commerce where every inventory, sales, and test record carries the lot identifier from receipt through sale, so the lot genealogy is the ledger itself. With no state system to lean on, that ledger is the compliance backbone, and the inventory figures the monthly MET-1 requires come straight off it.
What this means for your operations: Because there is no state track-and-trace to fall back on, a clean lot-aware ledger is not a convenience in Arizona, it is the whole audit story, and your monthly reporting is a byproduct of operating normally rather than a reconstruction.
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4. Delivery, under the vehicle rules
What AZ requires: Adult-use home delivery became legal statewide on November 1, 2024. Deliveries must originate from a licensed retail location after a consumer order, be made by registered agents in unmarked vehicles equipped with GPS and video, carry a locked storage compartment, and stay under a 10,000 dollar total retail-value cap per trip, with a registered vehicle list and a daily usage log.
What SellStack does natively: SellStack owns the delivery order and integrates with your delivery platform as the operations layer; SmartRoutes is already fully supported, so the order carries into vehicle, driver, and routing logic, with the trip-value cap and vehicle rules enforced on the delivery side.
What this means for your operations: You get one order-to-doorstep flow instead of re-keying orders into a separate dispatch tool, and the vehicle and value limits are enforced where delivery actually happens.
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5. ERP integration
What AZ requires: A Arizona operation has to keep financials, inventory, and commerce in agreement, and reconcile all of it to Arizona's monthly state reporting. Operators running a separate ERP and a separate commerce system carry a standing reconciliation burden between the two.
What SellStack does natively: SellStack Cannabis ERP-Commerce backs onto your ERP or warehouse platform as the system of record, and Microsoft Dynamics 365 Cannabis on Business Central is already fully supported. Financials, inventory, and commerce run from the same ledger, so the lot record, the financial record, and the inventory movement are the same record.
No ERP in place yet: You do not need an ERP to run SellStack. SellStack Cannabis E-Commerce Edition operates standalone, with no ERP underneath it, so an operation can stand up a GMP-ready sales model now and work out which ERP or warehouse platform to connect later, or whether to add one at all. Even standalone, it is lab-results compliant out of the box: because it ingests lab data, a no-ERP operation still meets Metrc, BioTrack, and other state lab-results requirements from day one. The lot-aware ledger, the commerce layer, and the records are the same with or without an ERP, so nothing has to be rebuilt when one is connected down the road. That makes it a fit for operations mid-transition, and for startups that need to be selling on a compliant, GMP-ready footing before the deeper infrastructure is in place.
What this means for your operations: There is no reconciliation project between the ERP and the commerce layer. One ledger means your books, your inventory, and your storefront never drift apart.
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6. Schedule III GMP readiness
What AZ requires: Medical cannabis moved to Schedule III federally, effective April 28, 2026, and it is in effect now for Arizona medical operations. Adult-use rescheduling is still pending; the DEA proceeding was stayed September 29, 2026 awaiting a GAO report, with a decision expected late 2026 or early 2027. For medical operators, GMP-grade records start to matter.
What SellStack does natively: The records half of GMP, immutable and lot-level, is built into how SellStack operates, so the audit trail is a byproduct of running on one lot-level ledger rather than a separate project.
What this means for your operations: Your Arizona medical operations build GMP-grade records now, on a clock that already started, without a parallel compliance system bolted on beside your commerce stack.