City Council

(5)\n25-0600-S125\nGOVERNMENT OPERATIONS and BUDGET AND FINANCE\nCOMMITTEES REPORTS relative to the implementation of a business\ntax amnesty program for cannabis businesses.\nA. GOVERNMENT OPERATIONS COMMITTEE REPORT\nRecommendations for Council action, SUBJECT TO THE\nAPPROVAL OF THE MAYOR:\n1. INSTRUCT the Office of Finance to implement a business\ntax amnesty program for registered cannabis businesses\nas detailed in the October 2, 2025 Office of Finance\nreport, attached to the Council File, with full waiver of\npenalties and interest and installment agreements for up\nto 36 months.\n2. APPROPRIATE the following to provide for staffing\nresources to enact this program, and to be funded by\nincreased Cannabis business tax revenues:\na. $200,000 to Office of Finance General Fund No.\n100/39, Overtime General, Account No. 1090\nb. $100,000 to the Office of Finance General Fund No.\n100/39, Salaries, As Needed, Account No. 1070\n3. INSTRUCT the Office of Finance to report to Council,\nwithin 45 days of the deadline for businesses to apply for\namnesty, with:\na. Number of businesses applying\nb. Number of businesses provided amnesty\nc. Total amount of liability waived\nd. Amount of additional revenue anticipated based on\nparticipation in the program\n4. REQUEST the City Attorney to prepare and present an\nOrdinance authorizing the business tax amnesty program\nfor registered cannabis businesses.\n5. REQUEST the City Attorney, in coordination with the City\nAdministrative Officer (CAO) and the Chief Legislative\nAnalyst (CLA), to prepare and present an Ordinance for\nthe creation of the Cannabis Tax Amnesty Program Fund,\nwith said Ordinance to additionally specify that Tax\nAmnesty Program Fund receipts be programmed in the\nfollowing manner through the City Annual Budget Process:\na. 20 Percent Citywide and Office of Finance\nreimbursement\nb. 40 Percent Los Angeles Police Department (LAPD)\nand City Attorney for illegal cannabis enforcement\nc. 40 Percent Community Investment Department\n(CID)/Economic and Workforce Development\nDepartment (EWDD) for Social Equity Cannabis\nBusiness Grants.\n6. INSTRUCT the LAPD, EWDD, CID; and, REQUEST\nthe City Attorney to report with an itemized list of staffing\nand costs associated with the above mentioned\nprogramming options in Recommendation No. 5 for the\nCannabis Tax Amnesty Program Fund.\nB. BUDGET AND FINANCE COMMITTEE REPORT\nRecommendation for Council action:\n​\nINSTRUCT the Office of Finance to prepare and present to\nCouncil a business tax amnesty program for registered\ncannabis businesses as described in the Office of Finance\nreport dated October 2, 2025, attached to the Council file, with\nfull waiver of penalties and interest and installment agreements\nfor up to 36 months.\nFiscal Impact Statement: None submitted by the Office of Finance.\nNeither the CAO nor the CLA has completed a financial analysis of\nthis report.