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Medical marijuana industry booming, Arkansas legislature make change to taxes

Since the first medical marijuana dispensary opened in 2019, Arkansas has reached nearly $1 billion in sales. Here's where the tax money goes.

LITTLE ROCK, Arkansas — Since the first medical marijuana dispensary opened in 2019, Arkansas has reached almost $1 billion in sales, but the legislature has changed where that tax money will go.

Instead of the money going towards some state agencies and UAMS, the tax dollars will be used to help pay off student school lunch debts and for more medical residencies to try and help rural areas get more doctors.

UAMS will continue to get money from the state, but it won't be through the medical marijuana program. The medical center received about $62 million in tax dollars for its national cancer institute designation through the medical marijuana program.

Arkansas is on pace to bring in a record-breaking $280-300 million in medical marijuana sales, which would break last year's record of $276 million.

"It's obviously a focus for the industry because if you look at Oklahoma and Missouri, they don't have some of those limitations," said Scott Hardin, spokesman for the medical marijuana commission. "That's always going to be the argument... if we don't do it here, people will go to other states."

When voters passed the medical marijuana law in 2016,  40 licenses were available for dispensaries.

All but two of those have been given out.

There is a lawsuit to put those last licenses on hold. If a judge rules on the final two dispensary licenses, those businesses are expected to be located in Southwest Arkansas.

There is also another notable lawsuit concerning medical marijuana, and it's based on whether or not dispensaries are allowed to sell pre-roll.

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