LA Council Members: Deny Illegal Dispensaries Tax Certificates

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Two Los Angeles City Council members want local officials to stop issuing tax certificates to dispensaries banned under Proposition D, which allows just 135 MMJ centers to operate.

The city has issued about 945 tax certificates to companies that describe themselves as marijuana dispensaries, Councilwoman Nury Martinez said. The certificates are not a license to operate, rather they’re a way for the city to collect taxes.

Los Angeles collects about $3 million annually from dispensaries, most of which do not comply with Proposition D, she said.

Martinez and Councilman Jose Huizar introduced the motion that if approved would prevent the city’s finance office from issuing certificates to businesses that do not comply with Prop D, according to NBC4 News. It would also require existing dispensaries to submit to a renewal process.

California lawmakers have repeatedly tried to pass regulations governing dispensaries. Two bills introduced by state assembly members earlier this month are designed to “establish a comprehensive and uniform state regulatory structure” for medical marijuana businesses.