Voters To Decide On LA Medical Marijuana Tax
LOS ANGELES (AP) — Los Angeles voters will be asked next spring whether they want to tax medical marijuana dispensaries although the city attorney says a tax would be illegal.
The referendum is one of 10 measures the City Council voted Wednesday to put on the March 8 ballot.
Other measures include proposals to tax oil producers and increase library funding. A measure to exert more council control over city Department of Water and Power will require further council debate.
City attorney Carmen Trutanich has ruled that a tax on medical marijuana sales would be illegal because the dispensaries are nonprofits and it would be tantamount to sanctioning a criminal activity.
But Councilwoman Janice Hahn says the tax would technically be on the "reimbursements" marijuana buyers make to the dispensaries and could raise $3 million to $5 million a year.
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