City Council

(5) 25-0600-S125 GOVERNMENT OPERATIONS and BUDGET AND FINANCE COMMITTEES REPORTS relative to the implementation of a business tax amnesty program for cannabis businesses. A. GOVERNMENT OPERATIONS COMMITTEE REPORT Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. INSTRUCT the Office of Finance to implement a business tax amnesty program for registered cannabis businesses as detailed in the October 2, 2025 Office of Finance report, attached to the Council File, with full waiver of penalties and interest and installment agreements for up to 36 months. 2. APPROPRIATE the following to provide for staffing resources to enact this program, and to be funded by increased Cannabis business tax revenues: a. $200,000 to Office of Finance General Fund No. 100/39, Overtime General, Account No. 1090 b. $100,000 to the Office of Finance General Fund No. 100/39, Salaries, As Needed, Account No. 1070 3. INSTRUCT the Office of Finance to report to Council, within 45 days of the deadline for businesses to apply for amnesty, with: a. Number of businesses applying b. Number of businesses provided amnesty c. Total amount of liability waived d. Amount of additional revenue anticipated based on participation in the program 4. REQUEST the City Attorney to prepare and present an Ordinance authorizing the business tax amnesty program for registered cannabis businesses. 5. REQUEST the City Attorney, in coordination with the City Administrative Officer (CAO) and the Chief Legislative Analyst (CLA), to prepare and present an Ordinance for the creation of the Cannabis Tax Amnesty Program Fund, with said Ordinance to additionally specify that Tax Amnesty Program Fund receipts be programmed in the following manner through the City Annual Budget Process: a. 20 Percent Citywide and Office of Finance reimbursement b. 40 Percent Los Angeles Police Department (LAPD) and City Attorney for illegal cannabis enforcement c. 40 Percent Community Investment Department (CID)/Economic and Workforce Development Department (EWDD) for Social Equity Cannabis Business Grants. 6. INSTRUCT the LAPD, EWDD, CID; and, REQUEST the City Attorney to report with an itemized list of staffing and costs associated with the above mentioned programming options in Recommendation No. 5 for the Cannabis Tax Amnesty Program Fund. B. BUDGET AND FINANCE COMMITTEE REPORT Recommendation for Council action: INSTRUCT the Office of Finance to prepare and present to Council a business tax amnesty program for registered cannabis businesses as described in the Office of Finance report dated October 2, 2025, attached to the Council file, with full waiver of penalties and interest and installment agreements for up to 36 months. Fiscal Impact Statement: None submitted by the Office of Finance. Neither the CAO nor the CLA has completed a financial analysis of this report.