Substitute House Bill No. 5109 seeks to overhaul the current Cannabis Total THC Tax by implementing a new excise tax structure effective October 1, 2026. The bill repeals Section 12-330ll of the 2026 supplement to the general statutes and introduces a flat tax rate of 10.75% on gross receipts from cannabis sales by retailers, hybrid retailers, and micro-cultivators. This change eliminates the previous tiered tax rates based on total THC content for various cannabis products, such as plant material and edibles. The bill also outlines the responsibilities of cannabis sellers in collecting the tax at the point of sale, with exemptions for palliative use cannabis and transfers to transporters, while establishing penalties for late tax payments.

Additionally, the bill modifies the allocation of tax revenue, increasing the share directed to the Social Equity and Innovation Account from 65% to 70% for fiscal years 2027 and 2028, while reducing the General Fund's share from 10% to 5% during the same period. It also introduces new definitions and clarifications regarding cannabis and its products, including the establishment of a "Social Equity and Innovation Account" aimed at promoting equity in business opportunities. The bill includes technical amendments, such as the deletion of an obsolete definition, and emphasizes the importance of electronic filing and payment methods for tax returns. Overall, the bill reflects a significant shift in the taxation and regulation of cannabis sales, with a focus on equity and clarity in legal definitions.