The bill (SB-1138) which was approved on Wednesday by the Connecticut Joint Committee on Finance, Revenue, and Bonding is aimed at taxing adult cannabis sales in the state and using the proceeds for the betterment of the underserved communities. The bill (SB-1138) now heads to the full Senate for further consideration and approval.
Here is a quick snapshot of the tax receipts that are expected to be established as a result of the SB-1138 bill; 3% local sales tax on retail sales of cannabis, 6.35% state tax on retail sales of cannabis for adult use; and state tax on transfer from growers. The State tax on transfer from growers will be collected as per this formula - $13.50/ounce of trim & $35.00/ounce for cannabis flower. The proceeds of all the State tax revenues will eventually be used for improving the lives of economically distressed and underserved communities. The Community Development Corporation Trust Fund will receive all these funds and will be responsible for using them for various community development programs such as early literacy education. As far as local tax proceeds are concerned, these will be used in areas where the actual retail sales have occurred.
The Judiciary Committee earlier passed a separate bill (SB-1085) on April 8. The bill is intended to legalize the possession of cannabis for adults. The bill is also intended to expunge records of past cannabis-related possession convictions. The General Law Committee has also passed a third bill - the HB-7371 which is aimed at regulating the sales and production of cannabis for adult use on March 25.