Voters in the city of Los Angeles were asked on Tuesday to decide on three ballot measures in the primary election. The measures address cannabis and hotel taxes and require only a simple majority to pass.
Here’s what to know about each proposition and the results so far:
Measure CB: Taxing unlicensed cannabis dispensaries
Right now, unlicensed cannabis dispensaries do not have to pay business taxes, while licensed cannabis stores do. Proposition CB aims to change that by applying the city’s existing cannabis business taxes to unlicensed stores, allowing the city to potentially bring in up to $30-$35 million a year. The measure does not have an expiration date.
Supporters say the proposal could help generate more revenue for the city and hold unlicensed operators accountable. Opponents worry it could normalize or legitimize illegal cannabis businesses.
Measure TT: Increasing hotel tax
Measure TT asks voters if the city temporarily raises the transient occupancy tax (TOT) for hotel guests from 14% to 16% through the end of 2028 before permanently dropping to 15%. It’s expected to pull in around $44 million a year, essentially capitalizing on the amount of out-of-town visitors coming for the 2027 Super Bowl and the 2028 Olympics.
The measure also aims to update the TOT collection and reporting requirements to go toward general city services.
Measure TC: Applying hotel tax to online travel companies
Proposition TC seeks to update the transient occupancy tax collection and reporting requirements for online and other travel companies, such as Expedia.
Currently, those companies can collect the tax based on negotiated rental rates, instead of the total amount charged to the guest that includes fees and service charges. The money collected would go toward general city services.