Connecticut Committee Advances Bill to Replace THC-Based Marijuana Tax with Flat 10.75% Rate
- Connecticut’s Joint Committee on Finance, Revenue and Bonding approved a bill to replace the current potency-based THC tax with a flat 10.75% excise tax on marijuana sales.
- House Bill 5109, introduced by Rep. Jason Rojas, would eliminate the THC-content tax structure and apply a uniform tax rate regardless of marijuana potency.
- Supporters argue the flat tax would simplify compliance for businesses and create more predictable pricing for consumers by removing tax-driven pricing disparities.
- A companion bill, Senate Bill 59 by Sen. Jason Perillo, has also been introduced and referred to the same committee for consideration.
Connecticut’s Joint Committee on Finance, Revenue and Bonding voted today in favor of a bill that would eliminate the state’s current potency-based THC tax and replace it with a flat 10.75% excise tax on marijuana sales.
House Bill 5109, introduced by State Representative Jason Rojas (D), would mark a significant shift in how marijuana is taxed in the state. Under current law, Connecticut imposes a tax partly based on the total THC content of marijuana products, meaning higher-potency items are subject to higher tax rates.
The proposal would do away with that structure entirely, instead applying a uniform 10.75% excise tax to all marijuana purchases regardless of potency. The change would align Connecticut more closely with states that rely on percentage-based taxes rather than potency-driven formulas.
Proponents of the bill argue that the current system can create pricing inconsistencies driven by tax calculations rather than consumer demand. Moving to a flat-rate model, they say, could simplify compliance for businesses while providing more predictable pricing for consumers.
The legislation comes amid ongoing discussions among lawmakers about the broader impact of potency-based taxes and whether they unintentionally influence purchasing decisions.
A companion measure, Senate Bill 59, introduced by State Senator Jason Perillo (R), has also been filed and referred to the same committee.