New Tax On San Jose Marijuana Dispensaries Taking Effect

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Pot Warehouse Will Pad Oakland's Coffers

A medical marijuana dispensary worker shows marijuana plant buds. (Kevork Djansezian/Getty Images)

CBS SF Bay (con't)

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SAN JOSE (KCBS/AP) — Just because it’s illegal doesn’t mean you can’t tax it.

That’s the view in San Jose, where a 7-percent tax on marijuana dispensaries takes effect on Tuesday. Pot providers can attend a City Hall seminar on the new tax Monday. They’ll also have to start tracking receipts, although the first payment isn’t due until April 30.

KCBS’ Matt Bigler Reports:

Voters approved the tax last fall and it could add millions of dollars to the city’s empty treasury.

San Jose has about 100 medical marijuana shops. City finance officials issued a memo earlier this month that says all of them violate City Council guidelines that limit them to commercial areas and require them to be at least 500 feet from homes, schools and each other.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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