News » San Jose to Begin Taxing Medical Marijuana Dispensaries
February 28, 2011 by justin
Photo: Anna Fox
Included in local initiatives during the 2010 election and approved by the citizens of San Jose, dispensaries will soon have to pay taxes on their income. The measure is meant to help shore up the city’s budget by adding millions of dollars by way of a 7% tax. Given the economic hardships not just in California, but nation wide, these taxes help alleviate the need for taxes affecting the general population, furthering their appeal with the public. Measure U in San Jose passed with 78% of the vote, a landslide by most measures. With their business seen as illegal according to federal law it is yet to be seen how much these contributions to the city budget will further legitimize medical marijuana, but it’s certain that local support of additional revenue sources will have an impact.
As of March 1, dispensaries will need to begin paying taxes on their income, although the first tax payment won’t be due until April 30th, when they will need to begin tracking receipts of their sales. From that date forward dispensaries will need to file regular financial audits with the city.
For the 100+ dispensaries operating in San Jose, the city has set up talks at City Hall to inform dispensary owners and operators of the new rules and what they will need to do to be in compliance.
As they say, money talks.
[source San Jose Mercury]