U.S. Cannabis Market to Generate $2.3 Billion in Tax Revenue by 2020
- New Frontier Data Releases Executive Summary of Annual Report
Washington – New Frontier Data, the authority in business intelligence for the cannabis industry, has released the Executive Summary of its upcoming annual report, The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook. In this report, New Frontier Data has found that if all the states which are currently legal continue their projected growth, they could generate $2.3 billion in state tax revenue from retail sales by 2020.
“During this tough economy states are looking for any way to close their budget shortfalls and it appears that cannabis may hold an answer for them. New Frontier Data looked at the potential revenues that could be generated from state cannabis taxes and found that in this year alone, states could raise nearly $750 million and triple that number by 2020. These revenues will have a meaningful impact on state programs and provide governors with much needed breathing room in their budgets,” said New Frontier Data CEO Giadha Aguirre De Carcer.
Based on New Frontier Data’s sales forecasts, we estimate that in 2017 states where adult use cannabis is legal will generate $655 million in taxes on retail sales, of which $559 million will be from cannabis specific taxes, such as Washington’s 37% cannabis retail tax rate. The remaining $96 million will be earned from state sales taxes that are applied on all retail sales. By 2020, tax revenues from cannabis will grow to $1.8 billion of which $1.4 billion will be from cannabis-specific taxes. If you were to include medical sales in those numbers that would bring the total to $745 million for 2017 and $2.3 billion by 2020.
These tax revenues are just one of many projections in The Cannabis Industry Annual Report, which is being released later this month. The report analyzes the market’s growth forecasts, potential U.S. job creation, explores consumer sentiments towards cannabis in a new national poll, examines the impact of cannabis on the current opioid epidemic crisis and much more. The report is sponsored by Electrum Partners, an advisory firm specializing in medical and recreational cannabis and ancillary businesses.
“Electrum Partners helps businesses navigate and successfully grow in the highly complex cannabis industry. Electrum’s CEO, Leslie Bocskor is well known for his forward thinking and valuable insights that have shaped the business marketplace, as well as policy and regulatory frameworks across the country,” said Aguirre De Carcer.
“Establishing policy that can cross the nexus of political needs, policy needs and business needs is considerably more difficult than most realize. Finding a path to success for investors and businesses will be the result of understanding the psychology and the data as well as its impact on the opening up of capital in epic proportions we’ve not seen,” said Leslie Bocskor, Founder and President of Electrum Partners.
The Cannabis Industry Annual report leverages New Frontier Data’s advance analytics along with the breadth of newly available industry data to deliver fresh insight to the latest realities and expansive possibilities of legalized cannabis. The report is available on New Frontier’s website for presale at a special offer of $297 for a limited time.
About New Frontier Data:
New Frontier Data is an independent, technology-driven analytics company specializing in the cannabis industry. We offer vetted data, business intelligence and risk management solutions for investors, operators and policymakers. New Frontier’s data and reports have been cited in over 45 countries around the world to inform industry leaders. Founded in 2014, New Frontier is headquartered in Washington, D.C. and an additional office in Denver. For more information or media inquiries, please visit http://www.newfrontierdata.comor contact Gretchen Gailey at 202-489-3821 or firstname.lastname@example.org.
About Electrum Partners, LLC:
Electrum Partners is a pioneering leader in strategic management, advisory services, and entry and expansion opportunities for publicly traded and private companies in any sector of cannabis industry and its ancillary businesses. Electrum Partners’ reach encompasses hemp, legal medical marijuana and recreational marijuana (including marijuana pharmaceuticals, nutraceuticals and biotech), technology, ERP (enterprise resource planning), retail sales, processing and cultivation, ecommerce, unique brands, edibles manufacturing, intellectual property, finance, banking and complex issues management. Electrum Partners enables cannabis entrepreneurs and businesses of all sizes to create and capture shareholder value by capitalizing on the diverse and emerging opportunities in the cannabis industry throughout the United States and international markets. Electrum Partners maintains membership and relationships with key industry groups including MPP, DPA, NCIA, Arcview, Red Estatal de Mujeres Antiprohibicionistas and Women Grow.