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Bill Summary · HB 5109

Legislative bill overview

HB 5109 proposes replacing Connecticut's current cannabis total THC tax structure with an excise tax model. The bill would fundamentally change how the state collects cannabis tax revenue, shifting from a tax based on total THC content to a tax applied at the point of sale, similar to excise taxes on alcohol and tobacco.

Why is this important

Cannabis tax structure directly affects product prices for consumers and revenue streams for the state. How Connecticut taxes cannabis influences the competitiveness of legal dispensaries against illicit markets, impacts social equity goals in the cannabis industry, and determines funding available for drug treatment programs and regulation. The choice between THC-based and excise tax approaches has significant implications for different product types and market behavior.

Potential points of contention

  • Market impact by product type: Excise taxes typically affect edibles and concentrates differently than flower, potentially making some products disproportionately expensive and shifting consumer purchasing patterns in ways the current system may not
  • Revenue predictability: Total THC taxes create revenue based on product potency, while excise taxes are percentage or flat-fee based; shifting models could increase or decrease total state revenue depending on structure and rates
  • Social equity considerations: Different tax structures affect whether social equity license holders and smaller producers can remain competitive, with implications for the state's equity program goals

Compiled from official sources — confirm details with the bill’s official record.

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