Los Angeles voters headed to the polls this Tuesday to cast ballots on three key measures during the city’s primary election. Each of these proposals, which focus on cannabis and hotel taxation, requires a simple majority to pass and shape the city’s fiscal approach to both local commerce and the tourism sector.
Measure CB: Taxing Unlicensed Cannabis
Currently, a discrepancy exists in the local tax code: licensed cannabis dispensaries are subject to business taxes, while unlicensed operators are not. Proposition CB seeks to bridge this gap by applying existing cannabis business taxes to unlicensed storefronts.
If enacted, this measure could generate an estimated $30 to $35 million in annual revenue for the city. While supporters argue this creates accountability and a new revenue stream, opponents express concern that the move might inadvertently legitimize illegal operations.
Measures TT and TC: Adjusting Hotel Taxes
City officials are looking to capitalize on major upcoming international events, including the 2027 Super Bowl and the 2028 Olympics, through Measure TT. This proposal would temporarily raise the transient occupancy tax (TOT) for hotel guests from 14% to 16% through the end of 2028, after which the rate would permanently drop to 15%.
Proponents expect this to yield approximately $44 million annually to support general city services. Meanwhile, Proposition TC aims to modernize how these taxes are collected by closing a loophole for online travel companies like Expedia.
Currently, these companies calculate taxes based on negotiated rental rates rather than the total cost charged to the consumer, which includes various fees and service charges. Updating these requirements could ensure that tax revenue more accurately reflects the full price paid by visitors.
Frequently Asked Questions
What is the primary goal of Proposition CB?
The goal is to apply existing city cannabis business taxes to unlicensed dispensaries, which currently do not pay them, potentially generating $30-$35 million annually.
How would the hotel tax change under Measure TT?
Measure TT would temporarily increase the transient occupancy tax from 14% to 16% until the end of 2028, followed by a permanent adjustment to 15%.
Why is Proposition TC being proposed?
It aims to update tax collection and reporting requirements for online travel companies, ensuring they pay taxes on the total amount charged to guests, including fees, rather than just negotiated rental rates.
How do you think these potential revenue changes will impact the city’s ability to fund public services in the coming years?
