Oakland voters approve marijuana tax

OAKLAND, Calif., July 22 (UPI) -- Voters in cash-strapped Oakland, Calif., have resoundingly approved a referendum to put a city tax on medical marijuana sales, results show.

The Alameda County Registrar of Voters released figures Tuesday showing 80 percent of voters opted to approve the measure, which supporters say could produce between $300,000 and $1 million per year in tax revenues for the struggling Northern California city, the Los Angeles Times reported.

"Oakland will show that this can work if it's done right," Keith Stephenson, executive director of the Purple Heart Patient Center, one of four Oakland cannabis clinics. "There will be some cash-strapped areas that will use this to balance their budgets."

The newspaper said the Los Angeles City Council has proposed a similar medical marijuana tax, and Oakland City Councilwoman Rebecca Kaplan, who proposed that city's tax, told the Times that Berkeley and San Francisco also may consider similar legislation.

A tax of $18 will be levied for every $1,000 in gross marijuana sales, CNN reported.