City Council outlines streamlined cannabis licensing process and tax reform proposals

The Los Angeles City Government Operations Committee meeting on June 3, 2025, spotlighted the ongoing challenges faced by cannabis businesses in navigating the city's licensing and taxation processes. A key discussion point was the need for a more streamlined pre-application process, which currently requires applicants to collaborate with multiple departments to determine the suitability of their business locations within a 30-day timeframe.

Committee members emphasized the importance of aligning city codes with the operational realities of cannabis businesses. The current system, which includes a complex approval process, has led to delays and confusion, particularly for businesses that lack the necessary certifications. The committee is advocating for a holistic review of the licensing process to ensure that applicants can meet requirements efficiently and effectively.

One significant proposal discussed was the potential reduction of business taxes from 10% to 8% for social equity applicants. This move aims to alleviate financial burdens on cannabis businesses, many of which struggle with high tax rates and limited access to traditional banking services due to federal restrictions. The committee is considering how these tax adjustments could impact the city's budget while supporting the growth of the cannabis industry.

The meeting concluded with a call for improved integration of city departments involved in the licensing process, which would enhance service delivery to applicants. The committee is committed to ensuring that the cannabis industry can operate competitively while maintaining compliance with state regulations. As the city moves forward, the focus will remain on creating a balanced budget that supports both the industry and the community.