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Tuesday November 8, 2022 — California General Election
County

Los Angeles County
Measure C - Majority Approval Required

To learn more about measures, follow the links for each tab in this section. For most screenreaders, you can hit Return or Enter to enter a tab and read the content within.

Election Results

Passing

1,323,160 votes yes (60.2%)

875,617 votes no (39.8%)

Shall the measure enacting a tax in the unincorporated areas of Los Angeles County on cannabis businesses at annual rates not to exceed $10 per square foot for cultivation (adjusted for inflation) and a percentage of gross receipts for various cannabis businesses, including retail (6 percent), testing laboratory (2 percent), distribution (3 percent), manufacturing and for all other cannabis businesses (4 percent), generating approximately $10,360,000 to $15,170,000 annually, until ended by voters, be adopted?

What is this proposal?

Details — Official information

Impartial analysis / Proposal

Dawyn Harrison, Acting County Counsel

Approval of Measure C ("Measure") would authorize the County of Los Angeles ("County") to impose ageneral tax on cannabis business activities within the unincorporated area of the County. This Measure wasplaced on the ballot by a resolution approved by a four-fifths (4/5) vote of the members of the County Board ofSupervisors ("Board"). If approved by the voters, the County Code will be amended to authorize a tax oncannabis businesses engaged in activities defined in the ordinance such as cultivating, selling, processing,distributing, or testing cannabis or cannabis products in the unincorporated areas of the County. Personalcannabis cultivation or use would be exempt from this tax.

From July 1, 2023 until June 30, 2026, the Measure authorizes initial tax rates of:
• $7 per square foot of canopy space for cultivation using exclusively artificial lighting;
• $4 per square foot of canopy space for cultivation using combination lighting;
• $4 per square foot of canopy space for cultivation using no artificial lighting;
• $2 per square foot of canopy space for cultivation in any nursery;
• 4 percent of gross receipts for retail cannabis businesses;
• 3 percent of gross receipts for manufacturing and processing cannabis businesses;
• 3 percent of gross receipts for distribution cannabis businesses;
• 1 percent of gross receipts for testing laboratory cannabis businesses; and
• 4 percent of gross receipts for any other type of cannabis business.

Beginning July 1, 2026, until repealed by the voters, the Measure authorizes the Board to adjust the tax to a rateless than or equal to the maximum annual rates not to exceed:
• $10 per square foot of canopy space for cultivation using exclusively artificial lighting;
• $7 per square foot of canopy space for cultivation using combination lighting;
• $4 per square foot of canopy space for cultivation using no artificial lighting;
• $2 per square foot of canopy space for cultivation in any nursery;
• 6 percent of gross receipts for retail cannabis businesses;
• 4 percent of gross receipts for manufacturing and processing cannabis businesses;
• 3 percent of gross receipts for distribution cannabis businesses;
• 2 percent of gross receipts for testing laboratory cannabis businesses; and
• 4 percent of gross receipts for any other type of cannabis business.

Beginning in July 2027, the maximum annual tax rate for cultivation will be adjusted for inflation. Theordinance also establishes processes for registration, collection, enforcement, and tax appeals.

Payment of the tax does not authorize illegal or unlawful cannabis business activities, nor does it entitle a personto engage in illegal or unlawful cannabis business activities in violation of any local or State law.

If approved, revenue derived from the tax will be deposited into the County's general fund and may be used forany County governmental purpose.

This measure requires a majority vote of the qualified voters in the County of Los Angeles who cast votes in theelection.

Published Arguments — Arguments for and against

Arguments FOR

Measure C will allow the County to impose a general business tax on cannabis businesses located in theunincorporated areas of Los Angeles County ("County"). Currently, the County is developing a cannabisbusiness permitting process that is expected to launch in late 2023.

The proposed initial tax rates in the measure are low compared to many other jurisdictions in order to bettersupport the regulated cannabis market and incentivize consumers to buy legal, tested products, while generatingrevenue for County programs and services. Mindful of the dynamic nature of the cannabis market, Measure Callows the Board of Supervisors to either decrease or increase these tax rates up to the maximum rate providedby the measure after the first three years the initial rates are in effect.

If approved, this measure is projected to generate approximately $10 million in annual revenue that will bedeposited into the County's General Fund, with the potential to grow with a maturing market. Revenue may beused to fund a broad array of programs or services that can benefit all residents of the County.

The needs and impact of the legal cannabis industry will continue to shift in the coming years, and the taxrevenue can help support the County's development of a health and social equity-led cannabis program. Thesupport includes workforce and economic development programs, reinvestment in communitiesdisproportionately impacted by historical and current cannabis policies, enforcement and compliance programsto combat the proliferation of untested and unsafe cannabis, mitigation of adverse environmental impacts andmore.

Approval of Measure C is a critical step towards the full implementation of an equitable, legal, commercialcannabis market in Los Angeles County.

RAFAEL CARBAJAL
Director, Department of Consumer and Business Affairs

OPHELIA CHONG
Founder, Asian Americans for Cannabis Education

JONATAN CVETKO
Executive Director, United Cannabis Business Association

CHERYL A. BRANCH
Executive Director, Los Angeles Metropolitan Churches
Founder, Green Believers Project

LINDSAY ROBINSON
Executive Director, California Cannabis Industry Association

Arguments AGAINST

Whether you personally agree with the sale of recreational marijuana or not, Los Angeles County allows it.

Why? Because, over and above the regular sales tax, the county can gouge these local, small businesses byforcing them to pay additional taxes.

If you see this on your ballot, it's because you live outside of a city boundary.

These taxes are the precise reason that the black market for marijuana is estimated to be twice the legal market.Do you really think the buyers will be gouged with these taxes? Would you overpay when a cheaper alternativeis available?

Some say, "I don't use it, so I don't pay the tax." True. It's just like the hotel tax. Someone else paying is one ofthe main arguments.

You heard about the failed district attorney recall? Don't count on the registrar of voters to be on the side of thepeople, even if they can raise enough money and spend enough time and energy to get a petition to repeal thismonstrosity. The county bureaucracy will fight them every step of the way and write a ballot label that favors itsdefeat.

Remember Measure W? The Rain Tax? That's a FOREVER TAX too. You will never end the $300,000,000 ayear that the county steals from you. The county will get its pound of flesh.

By making it forever, the corrupt supervisors are saying that they own you. They know better than the voters.Don't fall for it.

This tax is PERMANENT. It's FOREVER.

It INCREASES every year FOREVER.

On that basis alone, you should vote against it.

There's no other way to put it. Vote NO, as many times as the county registrar allows.

Join us: http://bit.ly/NoForeverCannabisTax

HONOR "MIMI" ROBSON
Libertarian Party of California Chair

DANIEL WELBY
Libertarian Party of Los Angeles County Chair

Replies to Arguments FOR

Do you feel that medicinal use cannabis should be exempt? Think again. Government greed knows no bounds.

You've been tricked before. Measure M (2016), the forever metro transportation tax. Measure W (2018), theforever rain tax. Forever taxes are the new trend.

Why continue to pretend that it needs your money for an unexpected short fall? It wants your money now. Itwants your money later. Its glutinous appetite doesn't care whether you can afford it. it craves your money tofeed itself to keep growing fatter and fatter every day.

How many billions have you already paid to the homeless industrial complex? Do you see progress?

Or do you see new permanent bureaucracies? That's what forever taxes fund -- forever bureaucracies.

Let's face it, local governments are desperate. Bloated numbers of paper pushers, outrageously high salaries, 24karat gold pensions and medical benefits, along with all the same increasing costs (all caused by governmentpolicy) for food, utilities, health care, and inflation are driving them to bankruptcy.

The gloves have come off. Government doesn't want future voters to have a choice.

And when it runs out of familiar things to tax, it invents new ways to tax.

Universal law of taxes: Businesses don't pay taxes, people (like you) do in the increased prices you pay foreverything.

The wealthy hire people to find loopholes to avoid taxes or simply relocate.

Vote NO on Measure C ($758,500,000 forever increasing, forever tax) and every measure on your ballot.

Join us: http://bit.ly/NoForeverCannabisTax

HONOR "MIMI" ROBSON
Libertarian Party of California Chair

DANIEL WELBY
Libertarian Party of Los Angeles County Chair

DAVID BOWERS
Chair, Region 65 of LPLAC

MARK REYNOLDS
Director of Operations - Digital Glue

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