Oakland voters recently approved the nation’s first ever business tax on retail marijuana sales, Measure F, on the July 21, 2009 ballot.  The overwhelmingly majority of voters (80% to 20%) authorized the city to to levy a 1.8% tax on all "cannabis businesses" within Oakland. Initial estimates indicate that the tax will generate between $300,000-$350,000 in revenue for the city in the 2010 fiscal year.  Currently four dispensaries are licensed by the Oakland City Council to sell and dispense medical marijuana.  Several representatives from the Oakland City Council, members of the California Nurses Association, the medical marijuana dispensary community, and some members of the California State Assembly all publicly advocated the landmark measure. The formal opposition to Measure F was very minimal.

The passing of Measure F in Oakland, a city of over 400,000 people, is a major victory for both the medical marijuana movement as well as the legalization movement.  Government taxation of an activity or enterprise gives acceptance and legitimacy to the business in question. Medical marijuana is legal under California law, but prohibited by federal law. However, the Obama administration has stated it will end federal raids on medical pot clubs operating in California or other states that have legalized medical use.

What is expected to come out of the passing of Measure F is many more local jurisdictions within California might attempt to boost revenue by passing their own taxes on medical cannabis.  The city of Los Angeles, which has over 650 dispensaries is expected to quickly follow suit with their own taxation plan.  Medical marijuana is a billion dollar a year business in California.