(a)(1) There is imposed a tax, which shall be administered in accordance with the provisions of chapter 219, on each cannabis retailer, hybrid retailer and micro-cultivator at the rate of three per cent on the gross receipts from the sale of cannabis by a cannabis retailer, hybrid retailer or micro-cultivator. For the purposes of this section, “gross receipts” means the total amount received from sales of cannabis by a cannabis retailer, hybrid retailer or micro-cultivator.

(2) The tax under this section:

(A) Shall not apply to the sale of cannabis for palliative use;

(B) Shall not apply to the transfer of cannabis to a transporter for transport to any cultivator, micro-cultivator, food and beverage manufacturer, product manufacturer, product packager, dispensary facility, cannabis retailer, hybrid retailer or producer;

(C) Shall not apply to the sale of cannabis by a delivery service to a consumer;

(D) Shall be collected from the consumer at the time of sale, except as provided under subparagraphs (A) and (C) of this subdivision, and shall be in addition to the taxes imposed under § 12-330ll and chapter 219; and

(E) When so collected, shall be held in trust until remitted to the municipality.

(b) (1) On or before the last day of each month in which a cannabis retailer, hybrid retailer or micro-cultivator may legally sell cannabis other than cannabis sold for palliative use, each such cannabis retailer, hybrid retailer and micro-cultivator shall file a return with the Department of Revenue Services. Such return shall be in such form and contain such information as the Commissioner of Revenue Services prescribes as necessary for administration of the tax under this section. Each cannabis retailer, hybrid retailer and micro-cultivator shall file such return electronically with the department, to the extent possible.

(2) Each municipality in which a cannabis retailer, hybrid retailer or micro-cultivator is located shall submit to the commissioner at least annually the name and contact information of the individual designated by the municipality to receive notifications from the commissioner under subdivision (3) of this subsection.

(3) Notwithstanding the provisions of § 12-15, the commissioner shall notify each individual designated pursuant to subdivision (2) of this subsection of the amount of tax reported to be due under this section from each cannabis retailer, hybrid retailer and micro-cultivator located in the applicable municipality. The commissioner shall establish policies and procedures for the provision to municipalities of the information required under this subdivision.

(4) Not later than sixty days after the receipt of the information under subdivision (3) of this subsection, each such municipality shall invoice each applicable cannabis retailer, hybrid retailer and micro-cultivator, in accordance with the provisions of § 12-2f, and such cannabis retailer, hybrid retailer and micro-cultivator shall remit payment to the municipality not later than thirty days after the date such invoice was sent. The amounts remitted pursuant to this subsection shall become part of the general revenue of such municipality and used for any of the purposes set forth in subdivision (5) of this subsection.

(5) The tax collected pursuant to this section shall be used by such municipality to (A) make improvements to the streetscapes and other neighborhood developments in and around each community in which a cannabis retailer, hybrid retailer or micro-cultivator is located, (B) fund education programs or youth employment and training programs in such municipality, (C) fund services for individuals released from the custody of the Commissioner of Correction, probation or parole and residing in such municipality, (D) fund mental health or addiction services, (E) fund youth service bureaus established pursuant to § 10-19m and to municipal juvenile review boards, or (F) fund efforts to promote civic engagement in communities in such municipality.

(c) If any cannabis retailer, hybrid retailer or micro-cultivator fails to pay the amount of tax invoiced by the municipality within the time period set forth under this section, there shall be imposed a penalty equal to twenty-five per cent of such amount due and unpaid, or two hundred fifty dollars, whichever is greater. Such amount shall bear interest at the rate of one per cent per month or fraction thereof, from the due date of such tax until the date of payment. A municipality may waive, by vote of its legislative body, all or part of the penalties provided under this subsection upon a finding by such body that the failure to pay any tax was due to reasonable cause and was not intentional or due to neglect. Any penalty waiver shall be applied as a credit against future tax liabilities owed by the cannabis retailer, hybrid retailer or micro-cultivator.

(d) A municipality may impose a lien on the real property of a cannabis retailer, hybrid retailer or micro-cultivator for nonpayment of tax due under this section. The amount of such lien shall not exceed the amount of tax due under this section plus penalties and interest. Such lien shall have the same priority as a municipal lien for real property taxes.

(e) The commissioner may review and adjust any return filed by a cannabis retailer, hybrid retailer or micro-cultivator pursuant to subsection (b) of this section and may issue any assessments that may result therefrom, in accordance with the provisions of sections 12-548, 12-551 to 12-554, inclusive, and 12-555a. The provisions of said sections shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections had been incorporated in full into this section and had expressly referred to the tax under this section, except to the extent that any provision is inconsistent with a provision in this section.

(f) (1) No cannabis retailer, hybrid retailer, micro-cultivator or municipality shall issue a refund to a purchaser for any tax paid under this section by such purchaser.

(2) No municipality shall issue a refund to a cannabis retailer, hybrid retailer or micro-cultivator for any tax paid under this section by such cannabis retailer, hybrid retailer or micro-cultivator.

(3) No overpayment of the tax under this section by a purchaser, cannabis retailer, hybrid retailer or micro-cultivator shall be applied to any other liability due to such municipality from such purchaser, cannabis retailer, hybrid retailer or micro-cultivator.