LA voters approve higher taxes on unlicensed cannabis shops, online travel sites

Voters have spoken: after the city of Los Angeles added three ballot measure for the June primary election, Angelenos have said “yes” to two of the proposals while rejecting another.

See below for the results and how they will affect Los Angeles and its people.

Measure CB: Passed

With the passage of Measure CB, unlicensed and illegal marijuana dispensaries and operators within LA city limits will be required to pay the existing cannabis taxes.

For general cannabis sales, shops and businesses will be subject to a 10% tax. The city will also collect a 5% tax on medical cannabis sales, while a 2% tax will be imposed on cultivation.

If certified, Measure CB is expected to take effect this summer following the official canvass and certification of election results.

But it’s not clear how the city would enforce Prop CB to track down unlicensed cannabis dispensaries and enforce the new law.

Measure TC: Passed

Measure TC, which supporters said will close “tax loophole,” make online travel companies to pay more for a transient occupancy tax or hotel tax than now.

Currently, online travel companies (hence the ballot name TC) are paying the 14% tax for hotel stays and short-term rentals of 30 days or less. But the problem, according to supporters, is that these online companies, such as Expedia and Booking.com, pay the tax based on the discounted wholesale room rate, instead of the higher price they charge to their customers.

Supporters like Councilmemebers Eunisses Hernandez and Tim McOsker said the $5 million generated annually under the new law can be used for city services, such as street and sidewalk repairs.

The measure will take effect after Los Angeles certifies the election and the ordinance becomes operative under city law.

Measure TT: Rejected

Los Angeles voters decisively rejected Measure TT, a proposal to raise the city’s hotel tax from 14% to 16% through 2028, then reduced it to 15% permanently.

Supporters said the measure would generate revenue from visitors attending the 2027 Super Bowl and 2028 Olympics to help pay for city services. Opponents, including hotel and tourism groups, argued it would discourage travel and harm the local tourism industry.