San Jose Collects Nearly $300,000 from Dispensaries in First Month of New Marijuana Tax in California

Last year, San Jose voters passed Measure U. This bill now allows the city to tax marijuana businesses up to 10 percent. According to the official description of the measure, revenues fund so-called essential city services such as emergency response, street maintenance, police, fire, pothole repair and other programs, according to the Peninsula Press.

“We already pay 9.25 percent sales tax … and they want to add another 10 percent? They’re treating it as though it’s a criminal enterprise,” says Medicinal marijuana advocate and former marijuana dispensary volunteer Ellen Young.

Our Los Angeles medical marijuana attorneys understand that government officials continue to throw fees, fines, regulations and bans on medical marijuana dispensaries as a part of their agenda to close them down completely. The CANNABIS LAW GROUP continues to file lawsuits against the city on behalf of numerous marijuana dispensaries throughout the area. We understand the battle that dispensaries fight on a daily bases and understand that these city laws are inherently unfair. We continue to seek economic and punitive damages against the city as we stand with dispensary operators and fight for their business rights.

“I’ve always had the same view, which was a limited number of cannabis facilities in limited places, regulated, and some form of taxation,” says Council Member Pierluigi Oliverio as she continues to show support for the measure.

Dispensary operators must currently determine the tax by remitting their gross receipts. They’re also required to file financial audits so that the city can see the transactions on the general ledger.

“As of May 10, 73 medical marijuana collectives have remitted approximately $290,000 in taxes for the month of March,” the city announced on Friday, according to Toke of the Town.

Until recently, no one was sure just how much the San Jose medical marijuana tax would collect for the city.

Voters continue to overwhelmingly approve such laws. Funny, because San Jose still views their 100 or so medical marijuana dispensaries to be unlawful, but continue to require that the pot providers pay special marijuana taxes to help fund the cash-strapped city.

A majority of dispensary owners figured that government taxation would mean that they’ve finally received legal acceptance, but it’s now apparent that the providers will be catching it from both sides: they are still subject to police raids at the same time they are required to pay taxes to the government.

“The Finance Department is working with the City Manager’s Budget Office to develop a Marijuana Business Tax forecast, but this forecast can only be considered preliminary given the limited amount of collection data and the many factors that need to be integrated into the revenue projections,” says a letter signed by signed by Deputy City Manager Deanna J. Santana, Director of Finance Scott P. Johnson, and Director of Planning, Building & Code Enforcement Joseph Horwedel, San Jose’s Marijuana Business Tax (MBT). “These factors include future business closures and the impact of implementation of the City’s Medical Marijuana Regulatory Program.”

As we’ve discussed, the city is still planning to enforce zoning regulations, land use regulations and other punitive actions. They’re looking to enforce an existing law prohibiting marijuana dispensaries within 600 feet of schools to reduce the number of dispensaries in San Jose to only 10. Dispensaries, advocates and lawyers statewide will continue to fight for fair business rights for these dispensaries.

The Los Angeles medical marijuana lawyers at the CANNABIS LAW GROUP are offering legal assistance to medical marijuana dispensaries and collectives throughout the Los Angeles area. Call 714-937-2050 for a confidential consultation to discuss your rights.