STAMFORD — The city has collected about $77,500 in sales tax revenue so far from its two hybrid cannabis retailers.
Fine Fettle Dispensary, whose Stamford location began recreational cannabis sales Jan. 10, sent a check to the city’s tax collector last month for $65,333.19. Curaleaf, whose dispensary in the city started recreational sales later in January, sent a $12,219.98 check.
Fine Fettle’s is for sales from Jan. 10 through February, said executive Benjamin Zachs. Curaleaf’s check is for sales from Jan. 27 to Feb. 28, spokesperson Stephanie Cunha said.
Grants Officer Anita Carpenter told the Board of Finance last week that the city is looking to use the money to support a project to build bioswales, vegetated, shallow, landscaped depressions, which would absorb standing water along Washington and Tresser boulevards in Stamford’s downtown. The city is also seeking grant funding for the project, Carpenter said.
Recreational cannabis sales are subject to a 3 percent municipal tax on top of the state’s 6.35 percent sales tax and a THC-based tax. Medical marijuana products are not taxed.
Retailers collect the municipal tax at the time of sale and hold the money in trust until they remit it to the city or town where they operate, according to a report by the General Assembly’s Office of Legislative Research. Municipalities send an invoice to retailers based on information they receive from the state, which tracks cannabis sales.
State law requires that municipalities put their cannabis sales tax revenue toward either streetscape improvements, education or youth employment programs, juvenile review boards, mental health or addiction services, services for people released from prison or civic engagement programs.
In the city’s budget, officials projected that Stamford would collect $500,000 in tax revenue from local cannabis sales during fiscal year 2023-24.
H/T: www.stamfordadvocate.com
