I put my internet sleuthing hat on and found you a couple things...
Sacramento Bee Online article about this:
http://www.sacbee.com/391/story/150886.html
PDF from Board of Equalization:
http://www.boe.ca.gov/news/pdf/medseller2007.pdf
Quote:
If you sell medical marijuana, your sales in
California are generally subject to tax and you are required to hold a seller’s
permit.
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Seems like they are on the up-and-up.