LEGALIZING CANNABIS IN CT
Mar 08, 2024
/assets/images/provider/photos/2717549.jpg)
Like all of the 50 states, Connecticut has been on a roller coaster developing their own laws around cannabis. Below is an overview of the recent history and current laws that are in place in Connecticut.
Like all of the 50 states, Connecticut has been on a roller coaster developing their own laws around cannabis. Below is an overview of the recent history and current laws that are in place in Connecticut.
Recreational marijuana became legal in Connecticut on July 1, 2021, which makes the use and possession of small amounts of recreational marijuana legal for adults. Purchasing legal marijuana became available in retail stores January 10, 2023, at designated sites throughout Connecticut.
Adults 21 and older are able to possess up to 1.5 ounces on their person and have 5 ounces in a locked container in the home or locked trunk or glove compartment in the person’s vehicle.
Individuals are able to grow marijuana, adult’s ages 21 and older will be permitted to grow up to six marijuana plants. Plants must be grown indoors.
Prior sentences or charges for marijuana possession erased – Starting on July 1, 2022, simple possession charges of 4 ounces or less before Jan 1, 2000 or from Oct. 1, 2015 through June 30, 2021, individuals can petition the court to have the criminal records erased. Individuals with these same crime charges, between Jan. 1, 2000 to Sept. 30, 2015 will have those charges automatically erased starting on January 1, 2023.
There are 3 taxes imposed on cannabis bought reactional in Connecticut. State sales tax (6.35%), municipal level tax (3% to the city or town where the sale took place) and a tax based on the THC content in the product (10-15% of the sale price).
Here is an example:
| Example: | Chocolate Bar (100 mg of total THC/20 servings of 5 mg each) |
| Sales Price: | $30.00 |
|
Sales Tax ($0.0635): |
$ 1.91 |
| Municipal level Tax ($0.03): | $ 0.90 |
|
Statewide Cannabis Tax |
$ 2.75 |
| Total | $35.56 |
Connecticut did not do much with phasing in taxes, when recreational became available, all 3 taxes were immediately implemented. They do, however, treat medical marijuana like an over the counter medication. Connecticut patients are required to pay a 6.35% sales tax on every purchase of medical marijuana. There is no additional excise tax on medical marijuana in Connecticut.
I think Connecticut did a good job rolling out the system. The revenue numbers are incredible, especially noted in the Institute on Taxation article in this weeks readings. The article claims, state and local excise tax collections on retail cannabis sales surpassed $1 billion for the first time in 2018.
However, what is interesting is that the article also states that cannabis taxes are a potentially important source of revenue for states and localities, but they will not be a transformative one.
The price of cannabis is falling, and this will pose a major challenge to cannabis tax revenue collections in many states.
I don’t think CT could have done much different in the roll out of the adult use and medical program. The taxes are consistent with other states. The issue that we did see was with the lotto system for the license to open a dispensary.
It became very corrupt, very quickly. In fact, several lawsuits were filed against the state during the process due to unfairness. The state initially announced that it was one application per one LLC or business identity. Then mid-lottery it changed to submitting as many applications as you would like. The applications cost $500 each. This greatly skewed the results as the massive companies were spending thousands, perhaps millions in applications to guarantee they would get picked.
Resources:
https://portal.ct.gov/cannabis?language=en_US