Proposal to Tax Adult Cannabis Sales, Distribute Revenue to Underserved Communities Advances in Connecticut Legislature
SB 1138 is one of three bills moving forward in the Legislature that are intended to end marijuana prohibition in the state and replace it with a system in which cannabis is regulated and taxed for use by adults 21 and older
HARTFORD, Conn. — The Connecticut Joint Committee on Finance, Revenue and Bonding approved a bill Wednesday that would tax adult cannabis sales and distribute the revenue to underserved communities. It now advances to the full Senate for consideration.
SB 1138 would establish a state gross receipts tax of 6.35% on retail cannabis sales for adult use; a state tax on transfers from growers of ($35 per ounce for cannabis flower and $13.50 per ounce for trim); and a 3% local sales tax on retail sales. All of the state tax revenue would be distributed to the Community Development Corporation Trust Fund, which funds early literacy education and community development corporations that focus on improving the lives of people living in economically distressed and underserved communities. Local tax funds would go to the localities where the retail sales occurred. A detailed summary of SB 1138 is available at http://bit.ly/CT-SB1138.
"We applaud the committee for advancing this legislation, which is both forward-thinking and mindful of the past," said Kebra Smith-Bolden, co-director of the Connecticut Coalition to Regulate Marijuana, who testified in favor of the bill. "It very thoughtfully proposes the state direct the revenue from legal cannabis sales to the communities that have long borne the brunt of marijuana prohibition. This boost in much-needed resources to underserved communities promises a safer and healthier future for all Connecticut residents."
A separate bill to legalize possession of cannabis for adults 21 and older and expunge records for past marijuana possession convictions, SB 1085, was approved by the Judiciary Committee on April 8. A third bill, HB 7371, which would regulate the production and sale of cannabis for adult use, was approved by the General Law Committee on March 25. Links to summaries of the bills are available at https://www.regulatect.org/pending-bills.
"The war on marijuana is growing increasingly unpopular, and there is a growing sentiment in Connecticut and around the country that legalization is inevitable," said CCRM Co-director Adam Wood. "The three bills passed to date propose a comprehensive and well-planned exit strategy for the state. They would establish a well-regulated, thoughtfully taxed cannabis market that takes production and sales out of the shadows and brings them above board."