Opens in a new tab

Medical marijuana subject to new LA tax

March 10, 2011

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."

Related posts:

Want to tell your friends about this blog post? Check out the buttons — Tweet This, Reblog, Like, Digg This and more — at the bottom of this post. Or you can use the Share This icon to spread the word via e-mail and and online avenues. Thanks!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
Getting ready for the year-end tax countdown

October 17, 2026

Just 2½ months left in 2026. Time to start making tax plans and moves to…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment