Connecticut Committee Advances Bill to Replace THC-Based Marijuana Tax with Flat 10.75% Rate

Connecticut’s Joint Committee on Finance, Revenue and Bonding voted today in favor of a bill that would eliminate the state’s current potency-based THC tax and replace it with a flat 10.75% excise tax on marijuana sales.

House Bill 5109, introduced by State Representative Jason Rojas (D), would mark a significant shift in how marijuana is taxed in the state. Under current law, Connecticut imposes a tax partly based on the total THC content of marijuana products, meaning higher-potency items are subject to higher tax rates.

The proposal would do away with that structure entirely, instead applying a uniform 10.75% excise tax to all marijuana purchases regardless of potency. The change would align Connecticut more closely with states that rely on percentage-based taxes rather than potency-driven formulas.

Proponents of the bill argue that the current system can create pricing inconsistencies driven by tax calculations rather than consumer demand. Moving to a flat-rate model, they say, could simplify compliance for businesses while providing more predictable pricing for consumers.

The legislation comes amid ongoing discussions among lawmakers about the broader impact of potency-based taxes and whether they unintentionally influence purchasing decisions.

A companion measure, Senate Bill 59, introduced by State Senator Jason Perillo (R), has also been filed and referred to the same committee.