AZ SB1421

Imposes a luxury tax of five dollars per ounce on medical marijuana and all other forms of marijuana, including refuse and clippings, with proportionate rates for quantities less than one ounce.

Requires nonprofit medical marijuana dispensaries to obtain a license from the department of revenue and pay taxes on medical marijuana through official stamps or indicia before sale, with violations constituting a class 6 felony.

Exempts persons registered under state pharmacy law and those lawfully possessing medical marijuana without a dispensary license from the taxation and licensing requirements.

Establishes that medical marijuana dispensed from registered nonprofit dispensaries is not exempt from transaction privilege tax or use tax, even when dispensed pursuant to a physician's written certification.

Requires the department to adopt administrative rules for providing and displaying official tax stamps and compliance indicia for the diverse forms and methods of medical marijuana production and dispensing.