San Jose Collects Nearly $300,000 From Pot Tax

SAN JOSE (CBS SF) — In a strange twist, the number of police officer layoffs in San Jose may be reduced because of revenue generated by medical marijuana dispensaries.

Out of the 115 medical marijuana collectives believed to be operating here, 73 paid the new seven percent tax on the collectives mandated by Measure U. This has brought in around $290,000 in the first month the tax was imposed.

KCBS’ Mike Colgan Reports:

Councilman Pierluigi Oliverio, who led the effort to tax the businesses, said with the city facing a $115 million shortfall, any source of revenue is welcome.

“When you aggregate that to a year, that’s about $3 million,” he said. “That’s enough for three libraries or six times a senior nutrition program or 18 police officers.”

Dave Hodges with All-American Cannabis Club, one of two dozen collectives who didn’t pay the tax, said he was advised not to because paying the tax would violate state and federal law.

“The way Measure U is structured it defines the activities we are doing as a sale and sales of cannabis are federally illegal and illegal in the state,” he said. “What the city has done is create a measure that goes around state law.”

Adding to the confusing situation, all medical marijuana collectives are illegal here, whether or not a tax is paid.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

  • Tours Martel

    As long as we’re at it, let’s legalize heroin and child prostitution as well. There’s bound to be enough profit to continue to overpay and pension our police and fire departments. In the long run those departments will wind up working for the seamier elements, just as they work for politicians now.

    • Cash is passage isn't that the truth

      When big money is involved what ever that were illegal become legal.

      • mmo

        the thing is weed dosent hurt people as much as heroin or child prostitution the avalibility of those things wont help people dieing of cancer live longer and enjoy thier last days more so take your crazy ideas about pot and keep them to your self

    • tired of ignorance

      wow…..talking about apples and oranges

  • San Jose Collects Nearly $300,000 From Pot Tax - THCfarmer

    […] […]

  • Tours Martel makes a good point

    I agree with Tours Martel. All victimless crimes should be made legal because the government simply cannot control these sort of things. And what business is it of theirs if these things don’t harm anyone except the person doing them? Anything can be abused. Should we make forks illegal just because I can poke my eyes out with them?

    • mechanic

      Can you not read the “sarcasm” in Martel’s post?? Your just another adle-brained doper that we were referring to. Get sober.

      • mmo

        you cant sense sarcasm through a computer i was just pointing out the huge difference between prostitution and weed because heroin and prostitution arent victemless crimes

  • tired of ignorance

    just wondering what you are afraid pot smokers will do? comimitt crimes? what? pot is a downer, an amotivational drug. alcohol leads to DUIs, alcoholism, liver damage, etc.; cigarrettes lead to 1st, 2nd, and 3rd hand smoke; caffeine is an addictive drug with no other benefit than stimulation. all are legal and taxed. pick your poison and shut up!

  • Tax Revenue From San Jose Pot Clubs Dips « CBS San Francisco

    […] In May, San Jose received about $17,000 from a half dozen marijuana collectives, down from nearly $300,000 in March and April. […]

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