Oakland City Council Could Raise Cannabis Tax Rate

[Ms. RedEye]

Three Oakland city council members have proposed raising the business tax rate on medical marijuana sales to $12 or $24 per $1,000 of gross receipts. The current rate is $1.20.

The council members, Rebecca Kaplan (at-large), Nancy Nadel (district 3), and Jean Quan (district 4), said in an agenda report that the move would bring in an additional $200,000 to $400,000 in annual revenue.

Richard Lee, president of Oaksterdam University, an Oakland-based trade school for the cannabis industry, said that he has been working with the city council on this proposal. He also said the industry is fully behind it.

"We believe we should be paying more taxes, and we want to help the city more in its economic crisis," Lee said.

He also said that the taxes should extend beyond the cannabis clubs and be applied to suppliers, and nurseries. Lee estimates that medical marijuana in Oakland is a $20 million industry, and that further taxing will help further legitimize it.

The council members could not immediately be reached for comment.


News Hawk: MsRedEye: 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: San Francisco Business Times
Author: Vasanth Sridharan
Copyright: 2009 American City Business Journals
Contact: San Francisco Business Times: Contact the Editor
Website: Oakland council could raise cannabis tax rate - San Francisco Business Times:

 

[Jim Finnel]

if it works you can call it whatever you want

 

[Weed420]

I don't think the $24 per $1000 is out of line. But they need to use some common sense. If they tax it too much they're just going to push it underground again.