Measure U would do three good and important things. First, while it would not explicitly legalize San Jose’s medical marijuana dispensaries, it would no doubt offer them a powerful degree of legitimacy, and make it easier for them to provide services to their patients, it would protect. Second, it would begin the process of creating a regulatory framework under which medi-pot clubs and collectives operate. Third, it would create a potentially significant new revenue stream for the city.
Spearheaded by District 6 Councilman Pierluigi Oliverio, Measure U would authorize the City Council to implement a business tax specifically on local medical cannabis dispensaries. The measure stipulates that the council can impose a levy of up to 10 percent “for the privilege of conducting business within the City.” That would make San Jose’s medi-pot tax the steepest of such taxes in the state.
San Jose’s co-ops and nonprofit collectives widely oppose Measure U. Leaders like David Hodges of the San Jose Cannabis Buyers Collective worry that the tariff would force medical cannabis providers to raise prices, putting an undue burden on patients. We believe the proposal’s benefits are worth the price.