OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sHB-5055

AN ACT ELIMINATING MUNICIPAL MANDATES.

AMENDMENT

LCO No.: 4723

File Copy No.: 644

House Calendar No.: 125

Senate Calendar No.: 418


OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 15 $

FY 16 $

Various Municipalities

Potential Revenue Gain

Less than $50,000 Cumulatively

Less than $50,000 Cumulatively

Explanation

The amendment results in a potential revenue gain to municipalities with a population of less than 75,000. The cumulative revenue gain for all eligible municipalities is not expected to exceed $50,000 annually.1

The amendment allows municipalities with a population less than 75,000 to collect a tax on marijuana or other controlled substances seized by law enforcement. To the extent that any municipality would choose to do so, it would potentially receive revenue at the following rates:

● Marijuana, each gram or portion thereof- $3.50

● Controlled substance, each gram or portion thereof- $200

● Controlled substance not sold by weight, each 50 dosage unit or portion thereof- $2,000.

The amendment requires municipalities that choose to collect this tax to appoint hearing officers and establish a hearing process. Municipalities would be expected to factor any cost associated with this into their decision making as to whether to implement the tax.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

1 In FY 13, the Department of Revenue Services collected approximately $35,300 from the marijuana and controlled substance tax.