On March 8, Los Angeles voters will decide whether to create a “pot tax” on medical marijuana dispensaries.
“Measure M” would require the city’s dispensaries to pay a 5% business tax on gross receipts. That’s 10 times more than the city’s highest tax. The measure proposed by Councilwoman Janice Hahn, is estimated to raise at least 10 million for a city that faces a 54 million budget shortfall through June.
Medical marijuana activists who once urged City hall to tax and regulate them are hoping to defeat the proposal. Angered by the council’s decision to limit the number of dispensaries to 100 and to choose them by lottery. Activists say the proposal is an unfair tax on a medicine. A little sticky-icky may help ease the pain of Grandma’s Arthritis. If the councilwoman has her way, Grandma may be traveling longer and paying more for that sticky. Dispensaries are required to charge sales tax, in Los Angeles 9.75%. Higher business taxes could mean higher prices for the customer. In combination with the rising prices for food and oil it looks like Grandma won’t get lifted. That means, those cookies you asked for are out of the question.