Flagstaff Cannabis Banking

Herring Bank proudly introduces the Cannabis Banking Program, your trusted solution for navigating the unique financial challenges of the cannabis industry. Our comprehensive suite of banking solutions includes checking and savings accounts for cannabis businesses, ensuring your funds are managed securely. With 24/7 online banking access, you can oversee your operations anytime, anywhere, facilitating seamless consumer payments and electronic tax submissions to keep your business compliant and efficient.

Understanding the nuances of cash flow in the cannabis sector, we offer specialized cash management accounts, coupled with cash pick-up and delivery services, to enhance the safety and convenience of handling large cash transactions. For businesses looking to expand, our cannabis business accounts provide the necessary infrastructure to grow, while our investment options help in maximizing your returns.

Herring Bank supports your workforce with employee accounts, direct deposit payroll, ACH payments, and wire services, streamlining your payroll and payment processes. This comprehensive financial toolkit is designed to empower cannabis businesses in Flagstaff to thrive, providing a solid foundation for your financial success in this dynamic industry.

2024 Cannabis banking in Flagstaff: Current rules and regulations

In Flagstaff, Arizona, the cannabis industry has shown significant economic impacts following the legalization of adult-use recreational marijuana. The state generated $1.9 billion in cannabis sales in 2021, a figure that surpassed initial estimates and indicated a robust demand within the first year of legalization for recreational use. This spending covered both recreational and medical marijuana products, underscoring a thriving consumer market for cannabis in Arizona​​.

Tax revenues from medical and recreational cannabis sales for a single month (September) were slightly less than $22.2 million, demonstrating the substantial financial contribution of the cannabis industry to state and local governments. The tax structure includes a 16% marijuana excise tax on recreational sales and a 6.6% transaction privilege tax, which collectively support various public services and initiatives, including community colleges, public safety, the Arizona Highway User Revenue Fund, and social services for communities previously affected by marijuana criminalization​​.

Despite a noted decrease in cannabis sales from the peak times in 2021, which was partly attributed to the initial excitement over legalization and the impacts of the COVID-19 pandemic, the market shows signs of leveling out. The medical marijuana sector has experienced a more significant drop, with sales declining to about half of their peak level since recreational sales began. Nonetheless, the recreational sector has maintained more stable sales figures, suggesting an adjustment phase as the market matures​​.

Overall, the cannabis industry in Arizona contributes significantly to the state’s economy through sales revenue, taxes, and job creation, with the Department of Revenue playing a key role in collecting and managing marijuana tax collections. This industry’s growth and stabilization indicate a promising future, with expectations for continued contribution to economic development and public funding

Herring Bank, a cannabis banking solution provider for cannabis-related businesses (CRBs) offers services tailored to the unique needs of Flagstaff’s hemp industry, offering a wide range of banking solutions including checking and savings accounts, online banking, cash management, and account options designed to support the growth of CRBs. Their services reflect an in-depth understanding of the industry’s complexities and a commitment to facilitating compliance and operational efficiency for businesses engaged in cannabis banking​​.