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New Frontier Data - CannaBit Your weekly cannabis intel brief
March 11, 2018

Federal Cannabis Tax Revenue Could Exceed $105 Billion

  • New Frontier Data’s latest report, Cannabis in the U.S. Economy, shows how national legalization under a 15% federal cannabis tax would be a boon for the U.S. Treasury.
  • Under full national legalization, by 2020 sales from plant-touching businesses (producers, processors, and retailers) would exceed $48 billion, generating nearly $11B in federal tax revenues from business taxes ($2.0B), payroll taxes ($4.1B) and a 15% federal retail cannabis tax ($4.8B).
  • Such estimates are based on the growth of the industry under the current demand trajectory but do not include potentially significant added revenue from deregulation of CBD products, new cannabis-derived pharmaceuticals, or U.S. industrialization and commercialization of hemp.
  • The updated report, which includes analysis of the newly passed tax law, is available here.

Free Resource:

Cannabis in the U.S. Economy: 2018 Edition
Based on the new tax law passed in December 2017, this report examines three aspects of what full legalization would look like in contrast to the current, state-by-state patchwork of legalized environments, and the anticipated impacts which full nationwide legalization would hold for the U.S. Treasury.

These three aspects include:
  • Federal business taxes on cannabis businesses,
  • Federal payroll withholdings
  • Revenue generated from a national cannabis sales tax of 15%.

The report compares revenues that would be generated under the current state of legalization (forecast over 2017–2025) and a theoretical model of national legalization over the same period, assessing the impact on U.S. Treasury revenue and job creation in the industry.  *Report is not released yet, this is a pre-order*
Be First To Get It Here!
J J McCoy


Cannabis Jobs, Growth, and Tax Revenue After the Trump Tax Reform

By J. J. McCoy,
Senior Managing Editor, New Frontier Data
Read Here

The Tax Cuts and Jobs Act: Key Considerations for Cannabis Businesses

By Mary Amato, CPA, Partner
The Tax Cuts and Jobs Act (“the Act”), signed by President Trump on December 22, 2017, is the most sweeping update to the tax code since 1986. While technical corrections and interpretive guidance issued by the IRS are forthcoming, taxpayers must understand which provisions will affect them and how.
Full Article
CohnReznick is one of the largest accounting, tax and advisory firms in the United States, which has teamed with New Frontier Data in an exclusive partnership to provide increased transparency, improved efficiency, and more accurate risk management in taxation, compliance, and accounting within the cannabis space.

Stay tuned every two weeks for the latest in tax policy and its impact on cannabis.

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Copyright © 2018 Frontier Financial Group, Inc., dba New Frontier Data, All rights reserved.

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