Los Angeles City Council Proposes Measure CB to Tax Illegal Cannabis Businesses
The Los Angeles City Council has introduced Measure CB, a proposal to tax illegal cannabis businesses at the same rate as legal operators. This measure, set to appear on the June 2 ballot, aims to generate an estimated $30 million to $35 million annually for city services. The proposal seeks to address the competitive advantage illegal cannabis businesses have by not paying taxes or fees, which proponents argue undermines the legal market. Councilmember Katy Yaroslavsky, who chairs the budget committee, has emphasized the need to close this 'loophole' and reinvest potential revenue into shutting down more illegal operations. Despite the potential financial benefits, opponents express concerns that the city lacks effective enforcement mechanisms to collect taxes from illegal operators and worry that the city might become reliant on revenue from the illicit market. 
