SAN JOSE (KCBS) – Three San Jose City Council members are pushing for a measure that would crackdown on businesses, particularly pot clubs, that aren’t paying their taxes.

Under the present ordinance, the city has their hands tied; there is no stated power of enforcement.

More than half of the medical marijuana dispensaries in San Jose paid either no taxes during the last fiscal year or paid sporadically.

KCBS’ Mike Colgan Reports:

Now, council members Sam Liccardo, Rose Herrera and Pierluigi Oliverio are proposing modifying that ordinance to give them more option – including the ability to revoke a license and shut the business down.

“We’re seeing a significant number of medical marijuana dispensaries are not paying their fair share of taxes, but we don’t have any ability to shutdown those businesses,” said Liccardo. “With changing the ordinance, we should be able to do that.”

Herrera said the city is losing millions of dollars in tax revenues, this as San Jose continues to fight a budget shortfall.

“That revenue goes to the city which helps us put police officers on the street, firefighters on the street, and provide other important services,” she said.

The issue is expected to be taken up by the San Jose City Council’s Rules Committee on Wednesday.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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