But 26 states, including here in california, allow the use of medical marijuana. That confusion has led to a bitter fight in san jose. And now, over a Million Dollars hang in the balance. David armstrong proudly grows all this marijuana. He runs medimarts, a pot shop in san jose. But for the past 4 years, hes openly refused to pay the citys 10 business tax, which is required of all medical marijuana shops. He owes at least 1. 3 million. So, why is he stalling . He believes paying his taxes could actually land him in prison. David i wasnt going to pay a tax that breaks state and federal law, and be looking at 10 years to life. Female thats the offer we made to the city. Bigad armstrong and his legal team believe paying the tax would essentially mean theyre admitting to selling marijuana, which is still illegal under federal law. So, medimarts sent this offer to the city of san jose. Its willing to pay that 1. 3 million with a catch. The deal says the money will not be labeled as a tax,