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Marijuana Tax Proposed For San Diego

Photo caption:

Photo credit: Associated Press

Customers buy products at a medical marijuana dispensary, April 20, 2016.

Marijuana Tax Proposed For San Diego


Mark Kersey, councilman, city of San Diego


San Diego Councilman Mark Kersey plans to introduce a proposal Monday to tax local marijuana businesses at least 8 percent on gross receipts to help pay for code enforcement and the "strain" marijuana use will place on city resources.

The plan would go before voters in November if approved by the City Council.

Several other California cities, including Los Angeles, Oakland and Long Beach, have imposed similar taxes in anticipation of a November ballot initiative to legalize the recreational use of marijuana.

RELATED: What Could Change If Recreational Pot Is Legalized In California

Kersey said he does not support recreational pot, but he would like to tax it.

"Whether it passes or not we'll see in November. If it does, we need to make sure that we're not draining city resources that should be going to paving roads or hiring, or hiring more cops, or the things we need to do to enforce what is going to be a fairly large change in this industry,” Kersey said.

A group of local medical marijuana dispensary owners are expressing concerns over Kersey’s proposal. They worry the tax may lead to higher prices and a black market.

The measure goes before the council's rules committee Monday. Kersey expects a vote by the full council in July.


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