San Diego Rules Committee passes marijuana tax proposal

SAN DIEGO (KUSI) — The Rules Committee for the City of San Diego approved a proposal Monday to impose a tax on businesses that plan to sell recreational marijuana in the future and voters may see it on the ballot in November.

If California voters pass a measure to legalize recreational use of marijuana, Councilman Mark Kersey’s plan is to establish an eight percent tax on gross receipts of such businesses in order to cover extra municipal licensing and enforcement costs. The plan would not tax the drug designated for medical use, according to Kersey.

Kersey said that if California legalizes the drug for recreational use would create an unfunded mandate that would financially burden city government.

“I do not want to divert money away from street repair or further stretch our public safety resources in order to manage an unorthodox legal framework that will be imposed on our city in November when it passes,” Kersey said.

He described his proposal as “prudent policy planning” that wouldn’t be pursued except for use on the state’s recreational use measure.  

The Rules Committee voted 4-1 to develop the measure so that it can be brought before San Diego City Council for ballot approval. Councilman Chris Cate cast the dissenting vote. 

Categories: Local San Diego News