Connecticut Bill Would Replace THC-Based Marijuana Tax With Flat Excise Tax

A new bill filed today in the Connecticut Legislature would fundamentally change how marijuana is taxed in the state, moving away from a potency-based model and toward a simple flat excise tax. Senate Bill 59, introduced by State Senator Jason Perillo (R), was referred to the Joint Committee on Finance, Revenue and Bonding. The proposal is short (one page) but significant in scope, calling for an amendment to Chapter 214c of the state’s general statutes to “replace the cannabis tax based on total THC with a flat excise tax.”

Connecticut’s current system taxes marijuana products in part based on their total THC content, meaning higher-potency products are subject to higher taxes. Specifically, the state currently levies a per-milligram THC tax of $0.00625 for flower, $0.0275 for edibles, and $0.009 for other marijuana products such as concentrates and vape cartridges. In addition, purchases are subject to the 6.35% state sales tax and a 3% municipal tax in towns that allow sales. This structure was designed to discourage extremely potent products while also generating additional revenue from them. SB 59 would scrap that framework entirely and instead apply a uniform excise tax regardless of THC concentration.

Under a flat tax model, high-THC products would likely become less expensive relative to today’s pricing structure.

For retailers and producers, the proposal could also simplify compliance and pricing. The current THC-based system requires detailed potency tracking and tiered tax calculations tied directly to laboratory testing results. A flat excise tax would remove those variables, creating a more predictable and easier-to-administer system.

The bill has been sent to the Finance, Revenue and Bonding Committee for consideration.