Oakland Sets Tax Rates for Legal Cannabis

Reuters

Oakland's city council on Monday night approved the rates -- a 5 percent gross receipts tax on licensed marijuana growers and on businesses selling marijuana for medical purposes, and a 10 percent rate on sales of marijuana used for recreational purposes.

California voters in 1996 approved a measure allowing marijuana use for medical purposes and would legalize its recreational use if they approve Proposition 19 in November.

...While the vote by Oakland's city council marks another step in the city toward bringing marijuana into the mainstream, pot dispensaries that have proliferated in the city near San Francisco are worried a 5 percent levy is too high and that neighboring Berkeley will undercut it with a lower rate.

"Why go to Oakland when you can go to Berkeley and get the same thing cheaper?" Dale Sky Clare, a spokeswoman for Proposition 19 and executive chancellor for Oaksterdam University, a cannabis industry training school with campuses in Oakland, elsewhere in California and Flint, Michigan, said on Tuesday.