Dano Sosa urges Los Angeles council to reduce cannabis taxes amid industry crisis

The Government Operations Committee meeting held on June 3, 2025, in Los Angeles focused on critical issues surrounding the cannabis industry and budget modifications for city services.

During the public comment section, Dano Sosa highlighted the financial struggles faced by cannabis businesses in Los Angeles, attributing their difficulties to high taxation rates. He pointed out that while alcohol and tobacco are taxed at a lower rate, cannabis businesses face a 10% tax, which he argued is unsustainable. Sosa emphasized that many cannabis shops are operating illegally without paying taxes, exacerbating the financial burden on compliant businesses. He called for a reduction in cannabis taxes to below 1% to help stabilize the industry.

Tiffany Wright echoed Sosa's concerns, describing the city's tax structure as predatory, particularly affecting marginalized communities. She urged city representatives to eliminate excessive fees and reduce taxes, warning that failure to act could lead to long-term negative consequences for the community.

Following public comments, the committee moved on to discuss budget modifications. The agenda included proposals to restore funding for positions within the General Services Department (GSD) and to address the needs of city services. The committee expressed support for these modifications, recognizing the importance of GSD in maintaining city operations and serving residents.

The meeting concluded with a commitment to further discussions on the budget and the implications of the cannabis tax structure, highlighting the ongoing challenges faced by local businesses and the city's efforts to address them.