AZ HB2557

Establishes a new "nonprofit medical marijuana dispensary classification" under transaction privilege tax at a rate of 300 percent of the tax base for businesses selling or dispensing medical marijuana to qualifying patients pursuant to title 36, chapter 28.1.

Excludes medical marijuana dispensed pursuant to a physician's written certification from a registered nonprofit medical marijuana dispensary from the retail classification sales tax exemption for drugs and medical oxygen.

Applies the same use tax rate to medical marijuana purchased from nonprofit medical marijuana dispensaries as applies to other retail purchases, making purchasers liable for use tax on such items.

Designates none of the revenue collected from the nonprofit medical marijuana dispensary classification as "distribution base" for purposes of revenue sharing with municipalities and counties, keeping all such tax revenue at the state level.

Amends the income tax credit for increased excise taxes to reference the new medical marijuana tax provisions alongside existing excise tax increase credits.