Legal News

Oakland council finds a real friend in potential medical marijuana revenue

By Richard Binder

Oakland's City Council last week approved a 1.8% tax on medicinal marijuana sold in the city. Medical-marijuana advocates say if voters pass the proposal in a July election, Oakland would become the nation's first city to directly tax the drug.

Prospects for such a tax were made brighter in February, when U.S. Attorney General Eric Holder announced that the federal government would no longer raid state-approved dispensaries.

California is one of 13 states that have legalized medical marijuana, allowing it to be sold to people with a doctor's recommendation. It is relatively easy for anyone over 18 years old to obtain such a doctor's note. Advocates estimate there are 200,000 or more approved medical-marijuana users in California. Users already pay a sales tax on the drug.

The city of 400,000 residents is facing an $83 million shortfall in a $455 million budget.

Full story at Wall Street Journal.

Full post as published by Legal Pad | LA on April 30, 2009 (boomark / email).