Los Angeles Considering ‘Amnesty’ Program for Cannabis Businesses That Owe Back Taxes 

Cannabis businesses in Los Angeles, California, owe the city about $400
million in back taxes and fees, but under an “amnesty” program proposed by
the city council, only about $30 million would end up in city coffers, the Los
Angeles Times reports. The program would allow businesses that pay their
back taxes within three years to avoid paying late fees and interest.

The council on Tuesday voted unanimously to ask the Office of Finance to
draft language to create the program.

According to an October Office of Finance report outlined by the Times,
more than 500 of the roughly 700 licensed cannabis businesses in the city
collectively owed about $400 million in taxes, including $100 million in
penalties and $35 million in interest. That total increased to $417 million
in December.

However, only about $150 million of that is collectable as some debts are
outside the three-year statute of limitations, and some of the businesses
have shut down, the report says.

Under the amnesty program, about 20% of the revenue would go to the city’s
general fund and the Office of Finance; 40% would be earmarked for the city
police department and attorney’s office for illegal cannabis enforcement;
and the remaining 40% would fund social equity grants to cannabis
operators.