AZ SB1016

Establishes a new "medical marijuana classification" under Arizona's transaction privilege tax (TPT) system, taxing sales by nonprofit medical marijuana dispensaries at 5 percent.

Adds enforcement provisions allowing the Department of Health Services to suspend, revoke, or refuse to renew a nonprofit medical marijuana dispensary's registration for non-compliance with TPT requirements.

Exempts medical marijuana sales from the retail classification and creates a separate taxing category for marijuana sold by registered nonprofit dispensaries.

Requires approval by at least three-fourths of both legislative chambers for the medical marijuana classification TPT provisions to take effect.