LA addressing medical marijuana mixed message on tax collection

LOS ANGELES — The city will stop issuing new business tax certificates to medical marijuana dispensaries under an ordinance approved today by the Los Angeles City Council.

Despite the 2013 voter approval of Proposition D, which banned most medical marijuana businesses in Los Angeles, city finance officials have continued to issue tax certificates and collect taxes from them, illegal or not.

Some medical pot shops in the city are still allowed to operate due to exceptions in Proposition D, but finance officials said they are unequipped to determine whether a medical marijuana dispensary is in compliance and must leave the potentially complex legal question to be sorted out by city attorneys.

City leaders said collecting taxes while also banning medical marijuana businesses sends a mixed message, prompting them to simply cut off the issuance of any new tax registrations.

The ordinance approved by the City Council today calls for no...

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