The Los Angeles County Board of Supervisors has voted 3 to 2 to give approval to an initiative that would establish a 10% tax on cannabis sales that would go towards homeless services, the Cannabist reports. The proposal now goes to a vote of the people this November.
The initiative would establish 10% tax on the gross receipts of businesses that grow or sell cannabis. This tax would apply to medical cannabis sales, but would also apply to recreational cannabis sales if voters approve the Adult Use of Marijuana Act this November. That initiative would legalize the possession and licensed distribution of cannabis for everyone 21 and older.
According to estimates, the tax is projected to raise between $78 million to $130 million annually.