Even as Los Angeles tries to crack down on marijuana businesses, one arm of city government – its tax registration office –- has continued to register pot shops that may not be allowed to operate under voter-approved regulations.
The practice has alarmed some city lawmakers, who complain that marijuana shops not complying with the rules have used business tax registration documents to convince customers and landlords that they are operating legally.
Late last year, City Councilwoman Nury Martinez called for the city to stop issuing tax certificates to shops that are not in compliance with the law, arguing that it was hypocritical for the city to reap revenue from illegal businesses.