Some San Jose Pot Shops Owe Millions in Unpaid Marijuana Taxes

Records reviewed by the NBC Bay Area Investigative Unit show there are five marijuana businesses that owe the City of San Jose more than $2.1 million dollars in unpaid taxes, penalties and interest.

“Whether we want to be or not, we are somehow or another regulating a medical drug, something no city in the country really knows much about,” said San Jose Mayor Sam Liccardo.

More From NBC Bay Area’s Investigative Unit

The 1996 Compassionate Use Act legalized medicinal marijuana in California. Voters in San Jose then approved Measure U in November 2010, allowing the city to tax the sale of medical marijuana. Since then, the city has collected more than $17 million from the 10% Marijuana Business Tax on sales from collectives and dispensaries.

But records requested by the NBC Bay Area Investigative Unit show five currently operating marijuana businesses in San Jose are “non-compliant” with the city’s tax law.

Medical Marijuana is...

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