Marijuana Sales Tax Imposed in Oakland

Medical-marijuana providers in Oakland will soon begin paying an $18 municipal tax for every $1,000 worth of marijuana they sell, under a measure resoundingly approved by city voters.

The Los Angeles Times reported July 22 that Oakland officials estimated that the tax could raise $300,000 annually for the cash-strapped municipality. Eighty percent of city voters approved of the tax, which is higher than the $1.20 per $1,000 sales tax levied on other types of businesses.

Los Angeles, San Francisco, and Berkeley are also considering similar taxes on medical-marijuana distributors, some of which have embraced the moves as a step toward legitimizing their businesses.

The four medical-marijuana dispensaries in Oakland reported $19.7 million in sales last year. The new tax will help close the city’s $83-million budget gap.