Los Angeles considers medical marijuana tax to help homeless

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The city of Los Angeles could turn to pot to help the homeless population.

LA is currently considering a a tax on medical marijuana as well as a number of different sources to reduce the city’s homeless rate, Fortune reports.

City officials are looking into implementing a 15 percent tax rate on the cultivation and sale of medical marijuana to help pay for a $2 billion housing project that would provide residents with affordable housing and support services.

“Even as our economy improves, we do not anticipate to have an additional $1.78 billion over the next 10 years to dedicate for this purpose,” Chief Administrative Officer Miguel Santana told the city council at a recent meeting.

The proposed tax could bring in an estimated $17 million each year, and could increase considerably if California votes to legalize recreational marijuana use in November.

The tax hike may come with contention from medical cannabis patients, however. A majority of marijuana advocates argue that the tax could create economic hardships for some patients that might drive them to buy from the black market, Mashable reports.

Despite the possible contention, the medical marijuana tax is only one of nine proposals L.A. is considering to reduce their homeless population, which has increased by 12 percent over the last two years.

The city council is expected to make a decision on the tax proposal by July.