During the city’s recent midterm elections, Los Angeles voters approved Measure CB, which would require unlicensed cannabis distributors within city limits to pay taxes required of city-licensed vendors. NBC Los Angeles reports.
Currently, only licensed distributors must pay the city’s 10% cannabis business tax.
Voters approved the CB measure with 72% support. The measure was projected to raise between $30 million and $35 million in new tax revenue annually.
According to the report, the city also passed Measure TC, which closes tax loopholes for online hotel reservations.
Meanwhile, in March, the Los Angeles City Council asked The Finance Office drafted language to create an “amnesty” program for the city’s licensed cannabis businesses, which at the time collectively owed more than $400 million in back taxes and fees.
