Approval of Measure C ("Measure") would authorize the County of Los Angeles ("County") to impose ageneral tax on cannabis business activities within the unincorporated area of the County. This Measure wasplaced on the ballot by a resolution approved by a four-fifths (4/5) vote of the members of the County Board ofSupervisors ("Board"). If approved by the voters, the County Code will be amended to authorize a tax oncannabis businesses engaged in activities defined in the ordinance such as cultivating, selling, processing,distributing, or testing cannabis or cannabis products in the unincorporated areas of the County. Personalcannabis cultivation or use would be exempt from this tax.
From July 1, 2023 until June 30, 2026, the Measure authorizes initial tax rates of:
• $7 per square foot of canopy space for cultivation using exclusively artificial lighting;
• $4 per square foot of canopy space for cultivation using combination lighting;
• $4 per square foot of canopy space for cultivation using no artificial lighting;
• $2 per square foot of canopy space for cultivation in any nursery;
• 4 percent of gross receipts for retail cannabis businesses;
• 3 percent of gross receipts for manufacturing and processing cannabis businesses;
• 3 percent of gross receipts for distribution cannabis businesses;
• 1 percent of gross receipts for testing laboratory cannabis businesses; and
• 4 percent of gross receipts for any other type of cannabis business.
Beginning July 1, 2026, until repealed by the voters, the Measure authorizes the Board to adjust the tax to a rateless than or equal to the maximum annual rates not to exceed:
• $10 per square foot of canopy space for cultivation using exclusively artificial lighting;
• $7 per square foot of canopy space for cultivation using combination lighting;
• $4 per square foot of canopy space for cultivation using no artificial lighting;
• $2 per square foot of canopy space for cultivation in any nursery;
• 6 percent of gross receipts for retail cannabis businesses;
• 4 percent of gross receipts for manufacturing and processing cannabis businesses;
• 3 percent of gross receipts for distribution cannabis businesses;
• 2 percent of gross receipts for testing laboratory cannabis businesses; and
• 4 percent of gross receipts for any other type of cannabis business.
Beginning in July 2027, the maximum annual tax rate for cultivation will be adjusted for inflation. Theordinance also establishes processes for registration, collection, enforcement, and tax appeals.
Payment of the tax does not authorize illegal or unlawful cannabis business activities, nor does it entitle a personto engage in illegal or unlawful cannabis business activities in violation of any local or State law.
If approved, revenue derived from the tax will be deposited into the County's general fund and may be used forany County governmental purpose.
This measure requires a majority vote of the qualified voters in the County of Los Angeles who cast votes in theelection.