[420 Girl]

Santa Barbara, Ca. - I was wondering if the city could tax medical marijuana dispensaries and the answer was revealed at today's city council budget meeting.

City administrator Jim Armstrong told the council at the meeting that if the city wanted to do that, they would have to put a ballot measure before the voters. If the ballot measure was approved, the city could tax the gross receipts of the medical marijuana dispensaries.

Armstrong said that the city attorney doesn't like the idea, however, due to uncertainty about the legality of such a move. Multiple cases pending in state and federal courts about medical marijuana could provide clarity to such a tax sometime in the future.

The city of Oakland has taxed its dispensaries using a ballot measure approved by voters. It's unclear how much revenue it has generated, Armstrong said.

The council has not weighed in on the idea.

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