Los Angeles Raises Cannabis Tax Rates Keeping the Illicit Market Alive and Well in California

Voters adopted Measure C earlier this month, setting a tax schedule for these enterprises once they are eventually allowed, in the interim. The proposal established a number of initial tax rates, including $4 per square foot for cultivation under mixed lighting and $7 per square foot for cultivation indoors. The rates were set at 4% for retail gross receipts and 3% for production and distribution.