Los Angeles Votes to Raise Taxes on Unlicensed Cannabis Shops

During the city’s recent midterm elections, voters in Los Angeles approved Measure CB, which would require unlicensed cannabis dispensaries within city limits to pay the taxes required of the city’s licensed retailers, NBC Los Angeles reports.

Currently, only licensed dispensaries have to pay the city’s 10% cannabis business tax.

Voters approved Measure CB with 72% support. The measure was projected to raise between $30 and $35 million in new tax revenue per year.

The city also approved Measure TC, which closes tax loopholes for online hotel bookings, according to the report.

Meanwhile, in March, the Los Angeles City Council asked the Office of Finance to draft language to create an “amnesty” program for licensed cannabis businesses in the city, which at that point collectively owed more than $400 million in back taxes and fees.