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Tax Revenue From San Jose Pot Clubs Dips

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A vial of medical marijuana

Marijuana is poured from a jar at at medical marijuana dispensary. (David McNew/Getty Images)

SAN JOSE (KCBS) – San Jose’s hopes of getting a windfall from pot clubs seem to have hit a snag, as seen by a steep drop off in medical marijuana revenue in the past month.

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

Dave Hodges, founder of the All American Cannabis Club in San Jose, said that people have to keep in mind that there was a huge spike in pot sales when the city announced they may reduce the number of clubs allowed in San Jose.

“That first tax check was the result of a lot of people stocking up on their medicine,” Hodges said. “Now that they have a bunch of medicine, they don’t necessarily need to go back the next month.”

KCBS’ Matt Bigler Reports:

Hodges said he expects medical marijuana sales to pick up again soon.

San Jose City Councilman Sam Liccardo said he agrees that the vote to limit the cannabis clubs may have had some effect on sales and compliance with the city’s seven percent marijuana tax.

“We need to regulate them sensibly and also be very diligent in collecting our tax revenue,” he said.

City code owners are going out over the next two months to gather information from club owners.

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 This material may not be published, broadcast, rewritten, or redistributed.)

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