The San Jose City Council raised taxes on medical cannabis sales from 7 to 10 percent this week, the Merc reports.
About 96 clubs are open in the South Bay city, which collects about 4 million dollars per year is pot sales taxes. The City Council is also moving to declare clubs that do not pay sales taxes a public nuisance and shut them down.
San Jose has yet to adequately regulate its local dispensaries after voters overturned a de-facto ban with a referendum. More regulations on clubs are expected this Fall.