LA voters to decide on marijuana tax

LOS ANGELES The Los Angeles City Council voted Wednesday to put the issue before voters in March, calling the tax a "gross reimbursement fee" to avoid what the City Attorney has determined to be an illegal tax.

Because the marijuana collectives are technically non-profits their sales cannot be taxed. The city council argues a fee of 50 cents per $1,000 of marijuana sold would be considered part of the reimbursement cost that buyers make to the dispensaries.

The council says such a tax could raise about $5 million in revenues a year for the city.

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