Los Angeles considers helping the homeless with cannabis taxes

The city of Los Angeles is considering an unusual idea to curb its homeless population. City officials are reportedly planning to use a portion of the city's income tax of the local cannabis industry to build accessible housing for the homeless.

Earlier this month, the local government approved a budget of 2 billion $ aimed at getting the homeless population off the streets with the implementation of a new housing project. The challenge for the city is exactly how to finance these construction costs.

«Even though our economy is improving, we haven't anticipated a surplus of 1.78 billion over the next 10 years dedicated to this project,’ said Miguel Santana, the city's Chief Administrative Officer, during the City Council meeting.

One of the proposals chosen by the city's financial analysts suggests a 15% tax on the cultivation and sale of medical marijuana - an effort that would generate 17 million $ per year. The report even mentioned that this booty could increase exponentially if California decided to legalize the recreational sector in November.

«Cannabis is a new market and could be a significant source of revenue,» read the article. budget proposal.

Some Californian cities have already adopted similar tax plans, notably in Riverside County (Cathedral City or Desert Hot Springs).

But implementing a plan of this magnitude won't be as easy as voting for it. The Los Angeles City Council will first have to decide whether this medical cannabis tax is the best weapon they have to create this real estate project. 8 other projects have been proposed, including state bonds that would allow the city to borrow money and pay it back over 30 years.

If the Board approves this cannabis tax, Voters will have to approve it during the November ballot or during the municipal elections in March 2017. The final implementation date for this project therefore depends on which proposal is approved.

According to HighTimes,the cannabis tax will meet with strong opposition.

Whether the money is used to help the homeless or for some other purpose, medical patients fiercely oppose taxation schemes because they believe it creates an unfair burden on their choice to use a natural substance rather than conventional medicines. Supporters of legalization argue that taxing this natural medicine creates an economic burden for patients and drives them back to the black market.

Now, with around 254,000 homeless people living in Los Angeles County, the need to redistribute wealth is real.

The Municipal Council must make its decision before July 2016.