Cannabis Tax Revenue Estimate for New Approach Oregon
In a study published by news agencies in the United States and abroad, ECONorthwest took on the unique task of calculating the potential tax revenue generated in the first fiscal year if cannabis was legalized in the state of Oregon. Calculating revenues for a product that was previously part of the black and gray markets went beyond the typical analysis. Our methodology included the cost of production; price elasticity; the price of marijuana and its retail products; market demand; the short-term demand remaining in the gray market; accessibility of non-medical sales; new market entrants; home production; and non-resident demand. The final analysis concluded that approximately $38.5 million in excise tax revenue would be generated in the first fiscal year. Other preliminary studies set the target far below that. Of all the studies, ECONorthwest came closest to the actual collected tax revenue collected.
Client: New Approach Oregon