Tax Man Visits All SJ Pot Clubs This Week

A 7 percent tax goes into effect this week.

Monday, Feb 28, 2011  |  Updated 6:10 PM PDT
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The voters approved it. Now cannabis club owners are going to have to pay it.

NBC Bay Area

The voters approved it. Now cannabis club owners are going to have to pay it.

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The issue of medical marijuana is front and center today in San Jose. The city has invited people connected to the 102 cannabis clubs inside the city limits to come to City Hall to talk about a new tax that goes into effect this week.

Voters overwhelmingly approved the 7 percent tax last November.

Many of the pot club owners object to the tax. They argue the city can't have it both ways, pointing to the fact that the city considers them a public nuisance.

City finance officials issued a memo earlier this month that claims they violate City Council guidelines that limit pot dispensaries to commercial areas and require them to be at least 500 feet from homes, schools and each other.

Others disagree and say the tax will give them legitimacy.
       
It isn't clear exactly how much money the new tax will bring in.

Every dollar will count. San Jose faces a $110 million deficit.

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