The Los Angeles City Council on Tuesday instructed staff to develop a so-called "amnesty program" for licensed cannabis businesses, citing a need to support more than 500 delinquent operators who collectively owe some $400 million in taxes and recoup a portion of those dollars.
In a 13-0 vote, the council approved a proposal introduced by the Office of Finance, which seeks to capture unpaid cannabis taxes that otherwise would be lost. Council members Traci Park and Hugo Soto-Martinez were absent during the vote.
"There's still work to do with the tax amnesty program," said Councilwoman Imelda Padilla, who chairs the council's Government Operations Committee, which is leading discussions on the matter.
"The city finds itself with a unique opportunity to bring businesses into compliance," Padilla added, noting that any dollars collected from the proposed program would further support existing operators and ensure they stay in the city. The council and Mayor Karen Bass will be required to approve an ordinance later this year to effectuate the proposed program. In fall 2020, the Office of Finance offered a similar program, which generated approximately $20.6 million for the city from 6,190 cannabis businesses that participated. At the time, the city offered businesses a 12-month installment plan to resolve their outstanding taxes.
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