Los Angeles County Voters Approve Cannabis Tax

Los Angeles County Voters Approve Cannabis Tax

Approved by voters in Los Angeles County, California Countermeasure C On Tuesday, obtaining permits will impose a tax structure on businesses in unincorporated areas of the county. los angeles daily news report.

At the time of writing, Close to 60% of votes By the time the final tally was done, we were in favor of Option C.

Measure C imposes several initial tax rates. 4% for total retail revenue, 3% for manufacturing and distribution, $4 per square foot for mixed light cultivation, and $7 per square foot for indoor cultivation. After July 1, 2026, the Los Angeles County Board of Supervisors can reduce or increase tax rates within the maximum limits approved by voters.

It’s important to note that Bill C by itself does not legalize the sale of cannabis in the county, and additional steps are required before the industry can be launched. The oversight board still has to vote on it, and they have indicated plans to do so in early 2023.

“All cannabis business activity will continue to be prohibited in unincorporated areas of the county until the Cannabis Business Permit Program begins in 2023,” the bill outline states. “This action will make it legal for counties to tax the proceeds of cannabis businesses operating in these areas. Once the permit program begins, cannabis businesses will receive a tax credit issued by the County of Los Angeles’ Cannabis Authority. All necessary permits and licenses must be obtained from the appropriate state and local regulatory agencies, including a licensed cannabis business license.”

The Cannabis Control Office (OCM), under the Los Angeles County Office of Consumer and Business Affairs, is working on the development. A fair commercial cannabis program This includes permits and resources for eligible applicants with a proposed start in late 2023.

“The approach we have taken equitably distributes legal cannabis businesses to each supervisory district and specifies that cannabis can only be grown indoors and not in outdoor greenhouses,” said the supervisor. Kathryn Berger said. Said at a recent board meeting.

“Our board of directors needs to be clear: we will not tolerate illegal cannabis operations. undermine efforts, often at the expense of the rural communities I represent. Enclose all resources.”

County officials estimate that a total of $10.4 million in tax revenues will go to the Los Angeles County General Fund and the Cannabis Equity Program, which provides equitable access to enter the cannabis industry.

For the time being, however, cannabis businesses in unincorporated areas of the county remain prohibited until the permit program begins.

Existing or newly established cannabis businesses in unincorporated territories must be registered with the Los Angeles County Treasurer and Tax Collector within 30 days of the permit program commencement or within 30 days of the effective date of this ordinance. need to do it.

Regulations are still being worked out, but Los Angeles County staff initially plan to have up to 25 over-the-counter retail cannabis businesses, 25 delivery retail businesses, 10 indoor/mixed light grow facilities, 10 manufacturing, 10 distribution facilities, and 10 laboratories.

A similar vote was held in nearby San Diego County.

Voters also decided whether to approve Countermeasure A Unincorporated areas of San Diego County pay income-generating taxes for government services such as health care, fire protection, and parks.

With two decades of dedicated experience, Nuggs is a seasoned cannabis writer and grower. His journey has been a harmonious blend of nurturing cannabis from seed to harvest and crafting insightful content. A true expert, they've honed strain-specific knowledge, cultivation techniques, and industry insights. His passion shines through enlightening articles and thriving gardens, making them a respected figure in both the growing and writing facets of the cannabis world.

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