CT HB05109

Replaces Connecticut's THC-based cannabis tax structure with a flat 10.75% excise tax on gross receipts from cannabis sales, effective October 1, 2026

Eliminates the previous tiered THC tax rates: 0.625 cents per mg for plant material, 2.75 cents per mg for edibles, and 0.9 cents per mg for other cannabis products

Maintains existing exemptions: no tax on cannabis sold for palliative (medical) use, transfers to transporters, or sales by delivery services to consumers

Imposes a 25% penalty (minimum $250) plus 1% monthly interest for retailers failing to pay taxes on time; responsible individuals face personal liability for willful tax evasion

Revenue allocation phases in over time: by fiscal year 2029 and beyond, 75% goes to the social equity and innovation account and 25% to the Cannabis Prevention and Recovery Services Fund