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Medical marijuana subject to new LA tax

The voters of Los Angeles have spoken and they've overwhelmingly said tax medical marijuana.

If only it were that easy.

Sure, the March 8 vote easily approved Measure M, which will let the city collect a 5 percent tax on gross reimbursements from medical marijuana dispensaries.

But some say that despite the potential new revenue, some say the city might come to regret passing the pot tax. Anti-marijuana folks see this move as legitimizing the weed.

There's also the question as to whether the proposal is legal.

"If marijuana is supposed to be medicine, you can't tax medicine.," said L.A. City Council President Eric Garcetti. "And if it is a gross receipts tax on a business, these (dispensaries) are not supposed to be businesses."

Garcetti's concern is that the issue could be headed to court.

And if the tax is thrown out in future legal proceedings, he noted that "it could blow a hole in the budget when we have to return the money."

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