Pot Club Tax Helping San Jose Close Budget Defecit
SAN JOSE (AP) — San Jose officials have said a new tax on the city’s pot clubs is bringing in a strong source of revenue at a time when the city is looking to close a $115 million budget deficit.
San Jose’s finance department released figures showing that medical marijuana collectives paid $290,000 in March, the first month of the city’s new 7-percent tax on dispensaries.
City Councilman Peirluigi Olivero said the new revenue is important at a time when hundreds of layoffs are expected to help the city deal with its deficit.
Still, officials are not sure how long the windfall will last. The Council last month decided to limit the more than 100 pot clubs in San Jose to 10.
Officials in July will finalize details on the new limits.
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