Santa Clara Voters Will Weigh in on Pot Tax
The Santa Clara City Council voted 6-0 Monday to place a marijuana taxation measure on the November ballot. If ultimately approved by voters, officials say it could bring in over $2 million in revenue each year.
The measure would place an initial 5%-per-gross receipts tax on retail and manufacturing. For cultivation, the rate would be whichever is higher: 6% per square foot or 5% per gross receipts. Finally, distribution and testing would be taxed at 3% of gross receipts.
Recreational marijuana sales are prohibited within Santa Clara city limits, but that is expected to change. When the time comes to legalize commercial pot sales, the city hopes to have a taxation system already in place.
Read more at the Cannifornian.