OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-1104
AN ACT CONCERNING COMMUNITY RESTORATION FUNDS.
Primary Analyst: MM 5/5/21
Contributing Analyst(s): EMG, CW
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Revenue Services GF - Potential
Cost
286,189 490,547
State Comptroller - Fringe
Benefits
1
GF - Potential
Cost
97,546 202,596
Treasurer GF - Potential
Cost
75,000 None
Treasurer Community
Development
Trust Fund –
Potential Revenue
/ Potential Cost
See Below See Below
Note: GF=General Fund
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $
Various Municipalities Potential
Revenue
Gain
See Below See Below
Explanation
Conditional upon enactment of legalized recreational cannabis, the
bill imposes a 20% state sales tax and 3% local sales tax on cannabis
and cannabis products. Projected annual revenues are anticipated to be
$116 million (state) and $18 million (municipal) by FY 25. There would
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.3% of payroll in FY 22 and FY 23. 2021SB-01104-R000663-FN.DOCX Page 2 of 2
be corresponding costs to administer the programs under the bill.
The bill results in a one-time cost to the Treasurer to establish the
Community Development Corporation Trust Fund. To the extent that
revenues are available to support the various programs established by
the bill, there is an annual cost to the Treasurer to hire staff to
administer such programs.
Potential administrative costs to the Department of Revenue
Services are estimated at $383,735 in the first fiscal year following
legalization and $693,143 in the subsequent fiscal year. This includes
salary and fringe benefit costs for two Revenue Agents and five
Revenue Examiners, as well as a one-time set-up and information
technology programming cost estimated at $50,000 in the first year
only.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.