Tax on Unlicensed Cannabis Businesses
Plain-English Summary
Proposition CB asks Los Angeles city voters whether to apply existing cannabis business taxes to unlicensed cannabis dispensaries. This measure aims to eliminate the commercial advantage of unlicensed shops by taxing their sales and operations. A simple majority is needed for it to pass.
What each outcome does
If Proposition CB passes, the city of Los Angeles will apply its existing cannabis business taxes to unlicensed cannabis stores. This includes a 10% tax on cannabis sales, 5% on medical cannabis sales, 2% on cultivation, and 1% on testing and transportation, generating an estimated $30-35 million annually for city services.
If Proposition CB fails, unlicensed cannabis businesses in Los Angeles will continue to operate without paying city cannabis business taxes. They would retain their commercial advantage over licensed dispensaries, and the city would not generate the estimated $30-35 million in annual revenue from these taxes.
Who is funding each side
BallotPulse is non-partisan. We summarize each outcome in plain English and disclose the money on both sides. We do not tell you how to vote. Always read the official ballot text and decide for yourself.