The first month of San Jose's 7% tax on medical marijuana seems to be a success, at least as far as monetary support to the city is concerned. The city collected 290k in the first month of the tax being implemented, If these numbers did not change, though they would certainly lower with current city plans, this would bring the city about $3,500,000.
Starting March 1, San Jose slapped a seven percent tax on medical marijuana dispensaries under a measure city voters overwhelmingly approved last November. Even though San Jose officially considers all 100 or so of its dispensaries to be unlawful, pot providers are still required to pay the special marijuana tax to the cash-strapped city. - Steve Elliott
This tax of course is on top of the 9.25% mandatory sales tax, bringing the total taxes paid by medical marijuana patients to 16.25% of the cost of their medicine. The total of $290,000 is from only the 7% tax, and should silence those who argue that police work would be strained by medical marijuana dispensaries in San Jose. In fact it, all signs point to the fact that medical marijuana not only brings money into a city, but also reduces the strain placed on local police departments by the war on drugs.
