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As of December 13, 2010, the City of San Jose will no longer be accepting Business Tax applications for new medical marijuana establishments based on Council directive. If you have questions related to this matter please call: (408) 535-7055 press option 2 for Business Tax, then option 3 for Medical Marijuana Business Tax.

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Marijuana Business Tax

 

City Ordinance 4.66 (Marijuana Business Tax) Marijuana Business Tax Presentation

Ordinance

Presentation

MARIJUANA BUSINESS TAX
On November 2, 2010, San Jose voters
approved Measure U which allows the
City of San Jose (City) to tax all marijuana
businesses. This action allowed the City
Council to move forward on establishing the
Marijuana Business Tax (San Jose Municipal
Code Chapter 4.66).


MARIJUANA BUSINESS
The term "marijuana business" means any
marijuana-related business activity including
but not limited to planting, cultivating,
harvesting, transporting, manufacturing,
compounding, converting, processing,
preparing, storing, packaging, wholesale,
and/or retail sales of marijuana and any
ancillary products in the City, regardless of
whether they are conducted for gain or profit.


OTHER LICENSES, PERMITS, TAXES,
FEES OR CHARGES

Nothing in the new law changes any other
existing license or permit requirements that
apply in the San Jose Municipal Code or any
other ordinance or resolution of the City or of
its Council.


WHO MUST PAY MARIJUANA BUSINESS TAX?
Any person engaged in a marijuana business
in the City of San Jose shall pay a Marijuana
Business Tax.
Payment of the tax does not authorize
unlawful business.


WHEN AM I EXPECTED TO PAY?
The Marijuana Business Tax is effective as of
March 1, 2011. Taxes on the gross receipts
for each month are due on or before the last
day of EACH following month. If the due
date falls on a Saturday, Sunday or holiday,
the due date shall be the next regular
business day on which City Hall is open to
the public. For example, taxes on gross
receipts collected in March 2011 are due
at the end of April. However, since April 30,
2011 is a Saturday, the first tax remittance
is due the following Monday, May 2, 2011.


E-mail the Finance Department

WHAT ARE THE TAX RATES?
Effective March 1, 2011, the tax rate has
been set at 7% of gross receipts (City
Ordinance # 28867). Please refer to San
Jose Municipal Code Section 4.66.090 for
the full definition of "gross receipts".


WHAT IF I DON'T FILE OR PAY?
Failure to pay on or before the due date will
result in a penalty of 25% of the amount of
the tax, plus interest on the unpaid tax. If the
tax remains unpaid for a period exceeding
one calendar month beyond the due date, an
additional penalty of 25% plus interest on the
unpaid tax and interest on the unpaid
penalties is assessed.


VIOLATION OF CHAPTER 4.66
Conviction for violation of San Jose
Municipal Code Chapter 4.66 is deemed a
misdemeanor punishable by a fine of not
more than $500 and/or by imprisonment for
a period of not more than 6 months.


AUDIT
The Director of Finance shall have the power
to audit and examine books and records of
persons or businesses engaged in marijuana
business including both state and federal
income tax returns, California sales tax
returns, etc.


WHERE CAN I GET TAX REMITIANCE FORMS?
Tax remittance forms are available using the links
at the top of this page. Forms may also be
obtained at:

City of San Jose
City Hall
Customer Service Center, 1st Floor
200 East Santa Clara Street
San Jose, CA 95113


THIS NOTICE DOES NOT CONSTITUTE
FINAL OR COMPLETE INTERPRETATION
OF ALL LEGAL REQUIREMENTS.
Rather,
this is a brief summary of the Marijuana
Business Tax. For the full text of the Marijuana
Business Tax, please refer to Chapter 4.66 of
the San Jose Municipal Code.

Updated 02/23/2011


Finance Department
200 East Santa Clara Street San Jose, CA 95113
tel. (408) 535-7000 fax (408) 292-6482

 

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