Sweetening The Pot: Taxing Medical Marijuana Reaps Benefits in San Jose
San Jose shows that taxing maedical marijuana reaps benefits for city coffers
In the scramble to raise revenues, city, state and federal governments have considered slapping taxes on nearly everything they can figure that qualifies as a vice. While some of those efforts have been derided (remember criticisms of the fat tax?) and subsequently derailed, a few of these sin taxes have been pushed through. As it turns out, some of them have also been quite lucrative. Just ask the City of San Jose. According to the Sacramento Bee, San Jose is reaping rewards from taxing medical marijuana collectives. Recent figures from the finance department indicate that the new 7% tax brought in $290,000 in the first month the tax was imposed. Annualized, that’s nearly $3.5 million. Not a bad way to put a dent in the city’s $115 million budget deficit.