Los Angeles County voters approved Measure C, which will apply a tax structure to businesses that are located in unincorporated areas after receiving permits. Los Angeles Daily News reports.

Nearly 60% of votes were for Measure C at the time this article was written.

Measure C establishes several tax rates. 4% for gross receipts from retail, 3% manufacturing and distribution, $4 for mixed light cultivation and $7 for indoor cultivation. Los Angeles County Board of Supervisors has the power to reduce or increase tax rates up to the maximum rate approved by the voters on July 1, 2026.

It’s important to note that Measure C itself does not legalize cannabis sales in the county, with additional steps before the industry can launch. The Board of Supervisors still needs to vote on that, and they’ve indicated they plan to do so in early 2023.

“All cannabis business activity will remain prohibited in the unincorporated areas of the County until the cannabis business permitting program is launched in 2023,” the bill summary reads. “This measure would make it legal for the County to tax the revenues of cannabis businesses operating in these areas. Once the permitting program launches, a cannabis business operator will need to obtain all the required permits and licenses from the appropriate state and local regulatory agencies including a cannabis business permit issued by the Los Angeles County Office of Cannabis Management.”

The Office of Cannabis Management (OCM) under Los Angeles County’s Department of Consumer and Business Affairs is developing an equitable commercial cannabis program that includes permitting and resources for eligible applicants with a proposed launch in late 2023.

“The approach we’ve adopted will equitably distribute legal cannabis businesses in each supervisorial district and specifies that cannabis cultivation will only be permitted indoors—not outdoors in greenhouses,” Supervisor Kathryn Barger said at a recent board meeting.

“Our board must be clear: we will not tolerate illegal cannabis operations. Growers operating illegally undercut our efforts to establish a regulated, responsible cannabis industry. This is often at the cost of the rural communities I represent. I’m firmly committed to upholding the law and will corral all available resources to enhance enforcement and abatement efforts.”