CA dispensary wants tax payment labeled a ‘contribution’

The owner of a California medical marijuana grow and dispensary is proposing to pay $1.3 million in back taxes to the city of San Jose, but with a caveat – the money must be classified as a “contribution or collection of membership fees,” not as taxes.

David Armstrong, the owner of MediMarts in San Jose, hasn’t paid the city’s 10% business tax in four years, claiming that doing so would put him in violation of state and federal laws. Paying taxes would be tantamount to admitting that they sell marijuana, Armstrong and his lawyers…