Instructions for Form MET-1, ADOR11390 "Marijuana Excise Tax Return" - Arizona

This document contains official instructions for Form MET-1, and Form ADOR11390. Both forms are released and collected by the Arizona Department of Revenue. An up-to-date fillable Form MET-1 (ADOR11390) is available for download through this link.

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Instructions for Completing the Marijuana Excise Tax Return (MET-1)
ARIZONA DEPARTMENT OF REVENUE
www.azdor.gov
Online Filing
The Marijuana Excise Tax Return (MET-1) is used by marijuana businesses, licensed
by the Arizona Department of Health Services to sell adult use (i.e., non-medical)
Go to www.AZTaxes.gov
marijuana to final consumers. The Arizona Department of Revenue requires the
business to file and report their monthly marijuana excise tax (MET) liability due on
Notice for all filers: You may not file
those sales.
this return until you have been issued
USE THIS FORM TO:
both a Transaction Privilege Tax
• Report monthly MET liability on Adult Use/Recreational Marijuana
(TPT) license and Marijuana Excise
• Report all inventory changes, including Medical and Adult Use/Recreational
Tax (MET) registration number.
Marijuana
• Amend a previously filed MET return, or
• File a final return and cancel a business’s existing MET registration.
Mailing Address
Arizona Department of Revenue
IMPORTANT: To avoid delays in processing of your return, we recommend you
PO Box 29010
read these instructions and refer to them as needed to ensure you have accurately
Phoenix, AZ 85038-9010
entered all the required information.
• Please complete Section I, Section II and Section III.
• Please complete the MET-1 prior to completing the TPT reporting form.
Customer Service
• Additional information and forms are available at www.azdor.gov.
Center Locations
The following numbered instructions correspond to the numbers on the Form MET-1.
Phoenix Office
Section I: TAXPAYER INFORMATION
1600 W Monroe
Phoenix, AZ 85007
• Provide the ADOR Excise Registration Number that the Department of Revenue
has issued to the business.
8:00 a.m. - 5:00 p.m.
Monday through Friday
• For the Taxpayer Identification Number, provide the business’s Federal Employer
(except Arizona holidays)
Identification Number. (FEIN). Taxpayers are required to provide their taxpayer
identification number (TIN) on all returns and documents. A TIN is defined as the
Tucson Office
federal employer identification number (EIN). A penalty of $5 will be assessed by
the Department of Revenue for each document filed without a TIN.
400 W Congress
Tucson, AZ 85701
Ia. If the return is amending a MET-1 return that was already filed for a tax period,
7:00 a.m. - 6:00 p.m.
check this box. Be sure to note the period you are attempting to change. When
amending you must complete the entire form, the new MET-1 will OVERRIDE
Monday through Thursday
the one previously submitted.
8:00 a.m. - 12:00 p.m. Friday
(except Arizona holidays)
Ib. If the return is the final MET-1 return being filed for the business and the
Department of Revenue should thereafter cancel the business’s MET
registration, check this box.
Mesa Office
55 N Center
• Provide the date of the first day of the month for which you are reporting in Period
Mesa, AZ 85201
Beginning and the date of the last day of the month in Period Ending. For
(This office does not handle billing or account disputes.)
example, if the return is being filed for February 2022, enter “02012022” for Period
Beginning and “02282022” for Period Ending. This reported month will also be
Customer Service
referred to as the Tax Period in these instructions
Contact Information
You may not use one MET-1 form to report for more than one Tax Period
(month). An adult use marijuana retail business is required to report monthly.
TPT Licensing and MET Registration
(Arizona Department of Revenue)
• Provide the legal Business Name as listed on your successful registration or the
MET license certificate.
Phoenix Area
(602) 255-3381
• For Address information, provide the mailing address (number and street) where
all MET-related correspondence is to be sent (e.g., home address, corporate
Within Arizona
headquarters, accounting firm’s address, etc.) including any specification as to
who such correspondence should be in care of in the “C/O” space.
1 (800) 352-4090
• If this is a new mailing address from one that has been provided on a previously
filed MET-1 return, check the Address Changed box.
Adult Use Marijuana Business Licensing
(Arizona Department of Health Services)
Please avoid marking within any of the remaining empty fields in Section I. These
M2Dispensaries@azdhs.gov
are used internally by the Department of Revenue.
Page 1
ADOR 11390 (1/21)
Instructions for Completing the Marijuana Excise Tax Return (MET-1)
ARIZONA DEPARTMENT OF REVENUE
www.azdor.gov
Online Filing
The Marijuana Excise Tax Return (MET-1) is used by marijuana businesses, licensed
by the Arizona Department of Health Services to sell adult use (i.e., non-medical)
Go to www.AZTaxes.gov
marijuana to final consumers. The Arizona Department of Revenue requires the
business to file and report their monthly marijuana excise tax (MET) liability due on
Notice for all filers: You may not file
those sales.
this return until you have been issued
USE THIS FORM TO:
both a Transaction Privilege Tax
• Report monthly MET liability on Adult Use/Recreational Marijuana
(TPT) license and Marijuana Excise
• Report all inventory changes, including Medical and Adult Use/Recreational
Tax (MET) registration number.
Marijuana
• Amend a previously filed MET return, or
• File a final return and cancel a business’s existing MET registration.
Mailing Address
Arizona Department of Revenue
IMPORTANT: To avoid delays in processing of your return, we recommend you
PO Box 29010
read these instructions and refer to them as needed to ensure you have accurately
Phoenix, AZ 85038-9010
entered all the required information.
• Please complete Section I, Section II and Section III.
• Please complete the MET-1 prior to completing the TPT reporting form.
Customer Service
• Additional information and forms are available at www.azdor.gov.
Center Locations
The following numbered instructions correspond to the numbers on the Form MET-1.
Phoenix Office
Section I: TAXPAYER INFORMATION
1600 W Monroe
Phoenix, AZ 85007
• Provide the ADOR Excise Registration Number that the Department of Revenue
has issued to the business.
8:00 a.m. - 5:00 p.m.
Monday through Friday
• For the Taxpayer Identification Number, provide the business’s Federal Employer
(except Arizona holidays)
Identification Number. (FEIN). Taxpayers are required to provide their taxpayer
identification number (TIN) on all returns and documents. A TIN is defined as the
Tucson Office
federal employer identification number (EIN). A penalty of $5 will be assessed by
the Department of Revenue for each document filed without a TIN.
400 W Congress
Tucson, AZ 85701
Ia. If the return is amending a MET-1 return that was already filed for a tax period,
7:00 a.m. - 6:00 p.m.
check this box. Be sure to note the period you are attempting to change. When
amending you must complete the entire form, the new MET-1 will OVERRIDE
Monday through Thursday
the one previously submitted.
8:00 a.m. - 12:00 p.m. Friday
(except Arizona holidays)
Ib. If the return is the final MET-1 return being filed for the business and the
Department of Revenue should thereafter cancel the business’s MET
registration, check this box.
Mesa Office
55 N Center
• Provide the date of the first day of the month for which you are reporting in Period
Mesa, AZ 85201
Beginning and the date of the last day of the month in Period Ending. For
(This office does not handle billing or account disputes.)
example, if the return is being filed for February 2022, enter “02012022” for Period
Beginning and “02282022” for Period Ending. This reported month will also be
Customer Service
referred to as the Tax Period in these instructions
Contact Information
You may not use one MET-1 form to report for more than one Tax Period
(month). An adult use marijuana retail business is required to report monthly.
TPT Licensing and MET Registration
(Arizona Department of Revenue)
• Provide the legal Business Name as listed on your successful registration or the
MET license certificate.
Phoenix Area
(602) 255-3381
• For Address information, provide the mailing address (number and street) where
all MET-related correspondence is to be sent (e.g., home address, corporate
Within Arizona
headquarters, accounting firm’s address, etc.) including any specification as to
who such correspondence should be in care of in the “C/O” space.
1 (800) 352-4090
• If this is a new mailing address from one that has been provided on a previously
filed MET-1 return, check the Address Changed box.
Adult Use Marijuana Business Licensing
(Arizona Department of Health Services)
Please avoid marking within any of the remaining empty fields in Section I. These
M2Dispensaries@azdhs.gov
are used internally by the Department of Revenue.
Page 1
ADOR 11390 (1/21)
Marijuana Excise Tax Return (MET-1)
INSTRUCTIONS
Section II: INVENTORY SCHEDULE
the Tax Period that was sent for testing and destroyed
during the process. You will also include products that
The purpose of this schedule is to report any change in all marijuana
were distributed free of charge to staff, customers or
inventory, this includes additions to inventory, sales, transfers,
anyone else for any purpose and product unsuitable for
testing, returns to manufacturers and items destroyed. Each line
sale to final consumers. Other changes to inventory will
in the Inventory Schedule represents transaction detail relating to
include changes due to moisture loss, miscounts and
one of three marijuana product Types (Marijuana, Edible, or Other)
destruction/waste. This list is not an exhaustive list and
for one TPT Location.
any other changes should be included. Please note: You
For each line:
are REQUIRED to keep accurate records of these changes
to inventory.
• In column (G), enter the TPT Location Code number
corresponding to the retail location for which you are providing
Use tax should be reported on the TPT return for the
additional information on this line. This number can be found on
following items:
your Transaction Privilege Tax (TPT) license certificate.
• Items tested and destroyed during the testing process.
• In column (H), enter the Total Net Sales Amount of Adult Use/
Recreational marijuana by the product Type you specified in
• Products that were distributed free of charge to staff,
column (I). This amount represents the total dollar amount of
customers or anyone else for any purpose.
sales to the final consumer for the product Type during the Tax
Period specified in Section I. This number DOES NOT include
• Items taken out of inventory by the business for its own
tax collected or factored.
use.
• In column (I), specify the marijuana product Type (Marijuana,
If the testing result requires you to destroy marijuana
Edible, or Other) for the detail on this line.
because it cannot be sold to the public, the destroyed
marijuana WILL NOT be subject to use tax.
• In column (J), specify the Unit of Measure for the Type in column
(I). All transaction details provided in columns (K) through (R)
Use tax is reported on your TPT reporting form as items
on this line must be provided using the same unit of measure.
removed from inventory. Report the cost of this item as
The unit of measure for all types in column (I), will be in grams,
subject to use tax using Business Code 030.
ounces or pounds. What is required is the level of THC in the
product.
• In column (P), provide the total Quantity of Medical Marijuana
Sold to Final Consumers holding a medical marijuana card of
• An example of the calculation of the THC measurement of
product of the Type in column (I) at the TPT Location in column
Edibles into pounds: You purchased 2500 packages of
(G) during the Tax Period. Note:
Column (P) should be
cookies for your inventory. A package of cookies weighs 12
reported in unit measure. These sales are NOT reported in
ounces. The amount of THC in one package of cookies is
column (H).
20 grams. The total number of packages added to inventory
for the period is 2500. The grams of THC is 50,000.( 2500
• In column (Q), provide the total Quantity of Adult Use/
pkgs. X 20 grams) To convert the grams into pounds the total
Recreational Marijuana Sold to Final Consumers of product
number of grams must be divided by 453.592.(453.592 is the
of the Type in column (I) at the TPT Location in column (G) during
number of grams per pound) The result is 110.23 pounds.
the Tax Period. Note: Column (Q) should be reported in unit
measure, column (H) will reflect the price of the quantity
• In column (K), provide the Beginning Inventory for the Type in
sold in dollar amount. (less tax collected or factored).
column (I) at the TPT Tax Location in column (G) on the first day
of the Tax Period.
• Figure the Ending Inventory for column (R) by taking the sum
of columns (K) and (L) and subtracting the sum of columns
• In column (L), provide the total Additions to Inventory of the
(M) through (Q) [K+L-(M+N+O+P+Q)=R]. NOTE: The ending
Type in column (I) received at the TPT Location in column (G)
inventory will be the beginning inventory on your MET-1
during the Tax Period. The total should include any product
reporting form for the next reporting period.
purchases, and transfers to the location that increased its
inventory on hand.
• On line A, enter the subtotal of column (H)
• In column (M), provide the total amount of Returns to
Section III: TAX COMPUTATION
Manufacturer/Processor for any reason of the Type in column
(I) taken out of the inventory at the TPT Tax Location in column
• The sum of the dollar amounts entered in column (H) represents
(G) during the Tax Period.
Total
Net
Sales Amount
of
Adult
Use/Recreational
marijuana. This should be the same as the amount entered on
• In column (N), provide the total amount of product of the Type in
Tax Computation Section III, line 1 of the return.
column (I) taken out of the inventory at the TPT Tax Location in
column (G) as Transfers to Other Retail Locations during the
• For the Total Net Sales Amount of Adult Use/Recreational
Tax Period.
marijuana, enter the total dollar amount of adult use (non-
medical) marijuana sold to final consumers in the Tax Period on
• In column (O), for Products Taken Out of Inventory, provide the
this line. This total amount was calculated under column H on
total amount of product of the Type in column (I) that was taken
the Inventory Schedule (Section II).
out of inventory at the TPT Location in column (G) during
Page 2
ADOR 11390 (1/21)
Marijuana Excise Tax Return (MET-1)
INSTRUCTIONS
• The current statewide Excise Tax Rate for adult use marijuana
sales is 16 percent (0.16).
• Multiply Line 1 (Total Net Sales Amount) by Line 2 (Excise Tax
Rate) and enter the Excise Tax Due on this line.
• By law, if you collected more tax than is calculated as due, this
money must be reported and paid to the Department of Revenue.
Enter any such Excess Tax Collected on this line.
• Add Line 3 (Excise Tax Due) and Line 4 (Excess Tax Collected)
to figure the amount of Net Tax Due on this line.
• Enter the Total Amount Remitted with This Return on this line.
This amount will be equal to or less than the amount entered on
Line 5 (Net Tax Due).
Taxpayer’s Signature
Enter your first and last name and sign and date this form. Please
include a daytime phone number.
NOTE: If you wish to designate another individual as the person to
contact regarding the information provided on this return, check the
box next to the statement “The taxpayer designates the individual
listed below as the person to contact to schedule an audit of this
return and authorizes the disclosure of confidential information
to this individual.” The designee must sign on the line for “Paid
Preparer’s Signature (Other Than Taxpayer)” and provide his/her
daytime phone number.
If the return has been prepared by a paid preparer who is registered
with the Internal Revenue Service (IRS), that person must include
his/her Taxpayer Identification Number (TIN).
Any additional penalties and interest that may be due as a
result of late filing or late payment will be billed to the taxpayer.
NOTE: YOU MUST COMPLETE AND INCLUDE AN INVENTORY
SCHEDULE CONTAINING TRANSACTION DETAILS FOR THE
TAX PERIOD, OR THE MET-1 FORM WILL NOT PROCESS
CORRECTLY AND PENALTIES MAY APPLY.
Page 3
ADOR 11390 (1/21)
Page of 3