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San Diego Starts Cashing in on Legalized Cannabis

The city's cannabis business tax brought in more than $350,000 in January.


San Diego's cannabis business tax brought in $358,348 in the first month of legalized recreational marijuana sales, according to early figures released to KPBS on Monday.

Local marijuana businesses are required to pay the 5 percent gross receipts tax every month, and the first due date to pay the tax was Feb. 28. A city spokeswoman said the figure was for retail transactions in the month of January.

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San Diego voters passed the cannabis business tax, titled Measure N, in November 2016 just as California voters approved Proposition 64 to legalize recreational marijuana. The local tax also applies to recreational cannabis cultivation, manufacturing and distribution, but not to any medical marijuana activity.

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