SJ Mayor Reed Seeks Higher Tax On Pot Clubs To Pay For Special Election

SAN JOSE (CBS/AP) — San Jose’s mayor is calling for an increase in the city’s tax on medical marijuana dispensaries to fund a special election on the city’s pot regulations.

Mayor Chuck Reed said a referendum to repeal the new regulations crafted over the past two years could cost the city $1 million.

Marijuana clubs oppose the rules and have gathered nearly 49,000 signatures for a ballot measure, far more than the 30,000 needed.

Club owners claim the new regulations would invite federal raids by forcing dispensaries to grow marijuana on-site. The rules would also require more than 90 percent of the city’s clubs to close.

Reed said in a memo Tuesday he wants to raise the dispensary tax to 10 percent, up from the current 7 percent rate.



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