LOS ANGELES - The City Council voted to stop issuing business tax registration certificates to medical marijuana dispensaries in the city of Los Angeles. The action means that legal dispensaries will be allowed to remain open, but illegal entities will no longer get a certificate saying they can do business in the city.
The 12-0 decision will halt any new business tax certificates from being issued and discontinue the issuance of certificates to medical marijuana dispensaries that aren't in compliance with Proposition D. Effective March 31, 2016, all medical marijuana collective business tax registration certificates in their current form will be invalid and dispensaries must prove their compliance with Proposition D to the Office of Finance in order to renew.
The Council's action amends the Los Angeles Municipal Code to require medical marijuana dispensaries to attest compliance with Proposition D when submitting annual renewals and prohibits a medical marijuana dispensary from displaying a certificate of a different classification . Those that aren't compliant will no longer be allowed to do business in Los Angeles.
Under the city's ordinance, business operators who post an invalid business tax certificate will be charged with a misdemeanor. This is a step in the right direction for our communities.