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Legal Pot Brings Temporary Tax Break For Some Medical Users

Jeff Chiu / File / AP

This Feb. 1, 2011 file photo shows medical marijuana clone plants at a medical marijuana dispensary in Oakland, Calif.

Jeff Chiu / File / AP

(AP) - Some California medical marijuana users are getting a tax break.

State officials announced Thursday that certain purchases of medical cannabis are now exempt from sales taxes, under the law approved by voters this month that legalized recreational pot in California.

Under the new law known as Proposition 64, a 15 percent excise tax will be imposed in January 2018 upon purchasers of all marijuana and marijuana products, including medical cannabis.

Until then, the tax holiday goes to people who make purchases with a medical marijuana identification card from the California Department of Public Health.

The number of people issued the cards wasn't immediately available.

Medical dispensaries currently pay 7.5 percent in state sales tax on sales, and local taxes typically add 1 percent to 2 percent.

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