Marijuana and Controlled Substances Tax
PURPOSE: This Special Notice describes, and is intended to provide general information about, the tax on marijuana and controlled substances enacted by 1991 Conn. Pub. Acts 397.
EFFECTIVE DATE: Effective upon issuance and applicable to the purchase, acquisition, transportation or importation into Connecticut of marijuana or controlled substances in violation of any provision of Connecticut law on or after October 1, 1991.
STATUTORY AUTHORITY: 1991 Conn. Pub. Acts 397 [hereinafter, "the Act"].
IMPOSITION OF TAX: The tax is imposed on any marijuana or controlled substances that are purchased, acquired, transported or imported into Connecticut at the following rates:
- $3.50 per gram (or portion thereof) of marijuana,
- $200.00 per gram (or portion thereof) of a controlled substance that is sold by weight, and
- $2,000.00 per each 50 dosage units (or portion thereof) of a controlled substance that is not sold by weight.
Persons in lawful possession of marijuana or controlled substances are not subject to the marijuana and controlled substances tax.
PERSON UPON WHOM TAX IS IMPOSED: The tax is due and payable immediately upon acquisition or possession in Connecticut by a dealer.
DEFINITIONS: As used in the Act:
marijuana means "marihuana" real or counterfeit, as defined in Conn. Gen. Stat. §21a-240 (29), that is held, possessed, transported, sold or offered for sale in violation of any provision of Connecticut law.
controlled substance means "controlled substance", as defined in Conn. Gen. Stat. §21a-240 (9), that is held, possessed, transported, sold or offered for sale in violation of any provision of Connecticut law.
dealer means any person who, in violation of any provision of Connecticut law, manufactures, produces, ships, transports, or imports into Connecticut or in any manner acquires or possesses more than 42.5 grams of marijuana, or 7 or more grams of any controlled substance that is sold by weight, or 10 or more dosage units of any controlled substance that is not sold by weight.
PROOF OF PAYMENT OF TAX: Possession of any marijuana or controlled substance by a dealer is unlawful unless the marijuana and controlled substances tax has been paid. Payment of the tax is evidenced by a stamp that must be permanently affixed to a non-reusable container of the marijuana or controlled substance. The marijuana stamps are available in denominations of $10.00 and $500.00 and the controlled substances stamps are available in denominations of $200.00 or $10,000.00 and can be purchased from the Department upon payment of the full face value thereof. Each stamp may be used only once.
ADMINISTRATIVE REQUIREMENTS: Each dealer must keep complete and accurate records of all marijuana and controlled substances on which the tax is imposed, which records must be preserved for three years in such a manner as to insure their permanency and accessibility for inspection by the Department. Where a dealer cannot produce evidence that stamps were purchased to cover the receipt of any marijuana or controlled substances, it will be presumed that such marijuana or controlled substances were sold without having the proper stamps affixed.
INTEREST AND PENALTIES: For each tax deficiency assessed by the Department, a penalty of 10% of the deficiency or $50.00, whichever is greater, and interest at the rate of one and one-fourth percent per month or fraction thereof from the due date of the tax to the date of payment will be added to the amount of the tax deficiency. If the Department determines that the tax deficiency or any part thereof was due to a fraudulent intent to evade the tax, a penalty of 25% of the deficiency and interest at the rate of one and one-fourth percent per month from the due date of the tax to the date of payment will be added thereto. A penalty of 100% of the tax in addition to the tax imposed will be imposed on any dealer who violates any provision of the Act. In addition, any person who violates any provision of the Act will be fined not more than $10,000 or imprisoned not more than six years or both.
Marijuana and controlled substances tax