Modesto Adds Retail Tax for Pot Businesses

MODESTO -- The City of Modesto has decided to add an additional local tax on all marijuana businesses.

The new tax on all cannabis-related businesses now has some worried it won't just be businesses taking a hit. The additional 8 percent the city will impose could price out patients.

Modesto city spokesman Thomas Reeves said tax money will go into the city's general revenue fund. The city says they expect to collect $1.5 million just from the rest of this fiscal year alone and that number jumps up to $3 million for the next fiscal year.

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