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.



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 This material may not be published, broadcast, rewritten, or redistributed.)


  • Mark

    To Mayor Reed: Sometimes it’s best to do nothing rather than continue down a failed road. But wait, your a politician! That’s what you do.

  • Skip

    Guidance: That is what is needed from Mayor Reed. The Medical Marijuana rules on there face appear idiotic. State and city rights vs Federal Law. Federal Law trumps State Law. The law was crafted to minimize the clubs. But maximize the cities tax take until the Feds come in to shut them down
    The Mayor and council made the mistakes in crafting the law.. They should pay the cost for the repeal vote. Guidance….is what is needed..not a money grab..

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