Watch CBS News

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.

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 This material may not be published, broadcast, rewritten or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.