CNN - Oakland, California Approves Medical Cannabis Tax
 
 

OAKLAND, California -- Oakland's bid to become the first U.S. city to tax proceeds on medical marijuana passed Tuesday by a landslide vote.

About 80 percent of people voting in the Oakland election approved the new medical marijuana tax.

About 80 percent of voters chose to impose the tax on Oakland's medical marijuana facilities, according to the Alameda County Registrar of Voters.

"It is important because the city of Oakland is facing a massive deficit like many jurisdictions in California," said Steve DeAngelo, a leader of one of the city's cannabis clubs. "And we decided to step up to the plate and make a contribution to the city in a time of need."

DeAngelo, one of the people who led the effort to get the tax approved, said his business will now have to pay more than $350,000 from the new tax next year. Watch report from CNN's Dan Simon ยป

Oakland's City Council was also behind the move.

"Given that the medical cannabis dispensaries are something that was legalized in California, why not have revenue from it?" said councilwoman Rebecca Kaplan.

There was no formal opposition to the effort, but some drug fighters say the tax sends the wrong message.

The measure, passed in special mail-in election Tuesday, imposes a 1.8 percent gross receipts tax on the four licensed medical cannabis dispensaries in Oakland.

These facilities would have to pay about $18 in taxes for every 1,000 in marijuana sales.

 

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