NEW YORK: The legal cannabis market is expected to generate more tax revenue for states in the U.S, according to a report from New Frontier Data.
The U.S. cannabis market could generate $2.3 billion in state tax revenue from retail sales by 2020. The projection is based on the assumption for projected growth in all states currently legal for medical and recreational use of cannabis. According to the Colorado Department of Revenue tax data, dispensaries in Colorado, the first state in the United States to legalize cannabis, sold a record of $1.3 billion of legal cannabis in 2016.
New Frontier Data CEO Giadha Aguirre De Carcer. Said: “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,”