Oakland, California to Impose Tax on Medical Marijuana

July 21, 2009

A new tax, which is the first in the nation, will actually impose a tax on marijuana that is sold for medical purposes. The tax is being levied in Oakland, California and it has been reported that Berkeley and San Francisco may be considering similar legislation to fill in some of the gaps in city and state budget deficits.

Now, for every $1,000 that is made from gross marijuana sales, the city will be able to levy $18. A $1.20 business tax is also paid on every $1,000 in sales. The city council member, Rebecca Kaplan co-sponsored the change and said that it could generate more than $1 million for the city in annual revenue.

Voters in Oakland approved the new legislation by a margin of 80 percent. The measure was backed by the four medical marijuana dispensaries and no organized opposition arose during the vote. It was proposed to help close the city’s $83 million deficit.