LA Will Consider Taxing Medical Marijuana Clinics

LOS ANGELES (AP) — Cash-strapped Los Angeles is considering joining other cities in charging tax on medical marijuana.

The City Council is scheduled Tuesday to consider putting a tax measure on the ballot next March.

Councilwoman Janice Hahn says it would be $50 for every $1,000 that medical marijuana collectives receive. She tells City news Service that the tax could bring in $3 million to $5 million a year.

However, the city’s legal advisers don’t like the idea. They say Los Angeles would be taxing businesses that the state classifies as nonprofit — and thus non-taxable — and federal law still considers illegal.

But Hahn notes San Jose, Sacramento and other cities already have such taxes.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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