Connecticut lawmakers are considering a change that could reshape how recreational cannabis gets taxed — and it starts with House Bill 5109 (HB 5109).
The proposal would ditch the state’s current potency-based system — where products are taxed based on how much THC they contain — and replace it with a straightforward excise tax tied to the sale price. The bill, formally titled “An Act Replacing The Cannabis Total THC Tax With An Excise Tax,” was introduced Feb. 10, 2026 and referred to the legislature’s Finance, Revenue and Bonding Committee for review.
HB 5109 specifically calls for replacing the THC-based tax with a 10.75% excise tax, simplifying the structure for both businesses and consumers.
What’s Changing
Connecticut’s existing framework taxes adult-use cannabis partly by potency — meaning stronger products get hit harder. For example, the state currently levies per-milligram THC taxes such as:
$0.00625 per mg for flower
$0.0275 per mg for edibles
$0.009 per mg for other products like concentrates
Those charges stack on top of the regular 6.35% state sales tax and a 3% municipal tax applied at retail.
Supporters of the new approach say switching to a flat excise model could streamline compliance and create more predictable pricing. The legislation is still early in the process, however, and must clear committee review before moving forward.
Why It Matters
While short and straightforward in language, the proposal carries potentially big implications. Tax structure affects retail pricing, market competitiveness, and consumer behavior — especially in regions where shoppers can cross state lines to compare prices.
Whether the bill ultimately passes or stalls, it signals ongoing debate over how cannabis should be taxed as the state’s legal market matures.
Dabbin-Dad Newsroom
