(Entrepeneur) In 2013, when only medical marijuana was legal in California, Los Angeles voters approved Proposition D limiting the number of medical cannabis dispensaries to 135 and imposing a 6 percent tax on medical marijuana sales. Proposition M will repeal much of the 2013 measure while expanding regulations to govern the recreational marijuana industry. Proposition M will:
- Reduce the tax on medical marijuana from 6 percent to 5 percent
- Set a 10 percent tax on recreational marijuana sales
- Set a 1 percent to 2 percent tax on businesses involved with the cultivation, transportation, testing and research of marijuana
- Mandate minority-owned businesses be included among licensed marijuana dispensaries
- Impose tough penalties for growing and distributing marijuana outside the regulated, legal process – even granting utilities the right to cut service to illegal marijuana shops
The new proposition gives the city council latitude to make changes without requiring voter approval.