Cash Crop: Local Government Taxation of Marijuana Businesses
By Ashley E. Ratliff and Scott C. Smith*
MCLE SELF-STUDY ARTICLE
(Check end of this article for information on how to access 1.0 self-study credit.)
When a majority of voting Californians passed Proposition 64 on November 8, 2016 legalizing the recreational use of marijuana1, local governments immediately faced the question of whether to prohibit, permit or regulate the operation of new marijuana businesses within their jurisdictions. A prudent, potentially lucrative follow-up question, though, is whether, and how, local governments can properly impose local taxes on those businesses.