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 This material may not be published, broadcast, rewritten or redistributed.)

Comments (5)
  1. Eduardo "Eddie" Gutierrez says:

    The L.A. City Council is completely clueless on this one. Exactly how does the city plan on making sure that dispensaries are reporting sales correctly? I am a candiadate for Los Angeles City Council Ditrict 6 and I have a medical marijuana proposal that will generate a conservative estimate of AT LEAST $50 million per year for the city. My proposal will also keep marijuana out of the hands of minors, create revenue for more police enforcement, prevent marijuana from being grown in neighborhood homes, and will not have a federal conflict of interest regarding taxtaion of illegal products.

    1. Jane Stramptom says:

      Your proposal will not get the backing of the Medical Marijuana Community if you are not allowing people to grow their own in their homes.

      They are allowed to now, with regulations and your proposal would be a set back to the Community.

      If you expect to get elected using this proposal I would change my game plan because this is a loosing one.

      I would go directly to the community and ask what should be included in a good Proposition and then edit as necessary.

      Your plan or anyone elses will not keep it out of the hands of minors, IF they are determined to get it.

  2. Eduardo "Eddie" Gutierrez says:

    Keep a look out for my medical marijuana proposal and don’t forget to vote March 8, 2011

  3. Eduardo "Eddie" Gutierrez says:

    This site could use spellcheck. Please disregard the typos in my first comment. (*candidate, District, taxation)

  4. Saber 1 says:

    The Federal Goverment has said it is illegal. Enough said. You pot heads should move to Frisco and live it up. Nancy will be glad to have more liberals to hang around with. Other methods of pain control are out there. Use it and not pot.

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