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San Jose Considering Massive Fines on Pot Businesses to Raise Cash

San Jose Considering Massive Fines on Pot Businesses to Raise Cash

In areas where marijuana is legal, governments are seizing opportunities to rake in loads of cash.  

In San Jose, where huge budget shortfalls and problems with pension reform have led to major financial losses and a loss of 20% of its workforce, the city is considering massive increases in fines dealing with marijuana in order to supply the city with cash, according to San Jose Inside

On Tuesday, the San Jose City Council is to consider implementing a new range of fines that would catapult the $25 fine for serious, non-administrative violations to anywhere from $1,250 to $50,000. The citation amendment would keep fines for simpler offenses, such as not posting a business license, to the $50-$25 range, but a public-nuisance violations could jump from what was once generally a $25 fine to a $1,250 penalty. If the offense were a third instance in an improper location, the fine could skyrocket to $50,000.

Because there is no statewide, consistent law in California for marijuana, the rules for locations of dispensaries are still nebulous, as well as laws regarding the taxation of marijuana..

States can rake in tons of cash from the present uncertainty. In Colorado, legislators reportedly think the state could cash in over $117 million in the 2014-2015 fiscal year from medical marijuana, then use the funds to build new schools and increase substance abuse programs.

The full list of proposed fines in San Jose is here.


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