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Retailers are used to attracting customers from different states

Hemp retailers in cities near state lines have long enjoyed increased customer traffic – and with it the revenue – thanks to either the prohibition of marijuana, or favorable conditions such as lower taxes.

But recent changes in state law in certain areasand the police, who show a willingness to arrest buyers of the state’s legal cannabis, threaten to disrupt the effect of the border town.

Connecticut Considers Cannabis Tax Cut to Compete with Massachusetts Marijuana

In Connecticut, Cannabis sales fell slightly from 2024 to 2025from $293 million to $290 million, despite the retailer adding nearly 1 million in individual sales, according to government data.

One possible culprit is competition from cannabis stores in Massachusetts, where lawmakers recently approved a much higher limit on marijuana possession for adult buyers.

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Is Connecticut In A Cannabis ‘Arms Race’ With Massachusetts?

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Is Connecticut In A Cannabis ‘Arms Race’ With Massachusetts?

Cannabis sales taxes in Connecticut are likely to drop this year as state lawmakers consider replacing the pot excise tax with a flat rate tax. And lawmakers say those lower prices could help the state compete with market in Massachusetts.

Meanwhile, north of the border, Massachusetts lawmakers unanimously passed a bill that would double the legal amount of cannabis flowers a person can purchase at one time to 2 ounces, double Connecticut’s limit.

Lawmakers in Connecticut say they are well aware that many cannabis buyers cross state lines for their cannabis needs. As cannabis remains illegal at the federal level, states have created their own regulatory structures that can significantly affect the success of hemp businesses and, as a result, tax revenues.

“You could say we’re in an arms race. We really are,” said state Rep. David Rutigliano, R-Trumbull. “Massachusetts has a lot more outlets, a lot less taxes. They did things a lot differently than we do here in Connecticut.”

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Cresco Labs

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The licenses are part of a Phase II expansion of the program

Two more large ones Cannabis operators from several states are entering Texas the recently expanded market for medical marijuana.

Chicago MSOs Green Thumb Industries and Cresco Labs have been awarded conditional licenses under the Texas Compassionate Use Program (TCUP), the Texas Department of Public Safety (DPS) announced on April 1.

The licenses are part of Phase II expansion of the program, during which a total of 12 new vertically integrated licenses for medical cannabis were made available.

GTI and Cresco Labs join MSO Trulieve Cannabis Corp. and Verano Holdingswhich were among 9 companies that received preliminary approval to operate in Texas in December.

A third company, Texas Medica Collective, also received a permit last week, according to DPS.

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