Pot Shops’ Licenses May Go Up in Smoke

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MyNewsLA.com reports there will be draft ordinance up for a vote by the Los Angeles City Council Tuesday that would require the city to stop issuing business tax certificates to medical marijuana dispensaries.

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 the businesses regardless of whether they were legal or not. Some city officials have accused pot shops of using the tax certificates to trick landlords and others into thinking they are permitted businesses.

The city last year collected $4.4 million from 447 dispensaries, even though only an estimated 100 or so dispensaries were thought to be in compliance with Proposition D.

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