Connecticut Bill to Replace THC-Based Marijuana Tax Scheduled for Public Hearing Next Week
- Connecticut's House Bill 5109 proposes replacing the current potency-based THC tax with a flat 10.75% excise tax on marijuana sales.
- The existing tax system taxes marijuana based on THC content, causing higher rates for more potent products, unlike percentage-based taxes in other states.
- Supporters argue the flat excise tax would simplify business compliance and offer consumers more predictable pricing.
- A similar Senate bill, Senate Bill 59, has been introduced, and both bills are under review by the Joint Committee on Finance, Revenue and Bonding with a public hearing set for March 11.
A Connecticut proposal that would overhaul how the state taxes marijuana has been scheduled for a public hearing on March 11 in the Joint Committee on Finance, Revenue and Bonding. House Bill 5109, introduced by State Representative Jason Rojas (D), would eliminate the state’s current potency-based THC tax and replace it with a flat 10.75% excise tax on marijuana sales.
Under current law, Connecticut imposes a tax based partly on the total THC content of marijuana products. That means items with higher potency face higher tax rates, a structure that differs from the percentage-based systems used in several other states.
HB 5109 would remove the THC-based tax entirely and instead apply a single 10.75% excise tax to marijuana purchases. Supporters of the proposal say a flat-rate system could simplify compliance for businesses and provide consumers with more predictable pricing.
The measure reflects a broader discussion among lawmakers about whether potency-based taxes create unintended effects in the marketplace, including price differences driven by tax formulas rather than consumer demand.
A similar proposal has already been introduced in the Senate by State Senator Jason Perillo (R), titled Senate Bill 59. Both bills have been referred to the Joint Committee on Finance, Revenue and Bonding.