Los Angeles Councilmember Nithya Raman (photo credit: Vivien Killilea/Getty Images).
Los Angeles mayoral candidate and City Councilmember Nithya Raman has released a sweeping marijuana policy proposal that calls for cutting the city’s cannabis business tax to as low as 0.25%, increasing enforcement against unlicensed stores and launching a pilot program for cannabis cafes ahead of the 2028 Olympics.
Raman, who is challenging incumbent Mayor Karen Bass, says Los Angeles’ legal marijuana market is being undermined by high taxes, regulatory costs and competition from unlicensed businesses.
Under the proposal, Los Angeles would replace its flat 10% gross-receipts tax on marijuana sales with a temporary tiered system ranging from 0.25% to 6% for two years.
The largest reductions would go to smaller businesses with less than $500,000 in annual revenue.
Raman is also proposing that marijuana businesses be included in broader small-business tax exemptions and that some functions of the Los Angeles Department of Cannabis Regulation be funded through the city’s General Fund rather than entirely through fees paid by licensed businesses.
Her campaign says licensed marijuana businesses in Los Angeles face a combined tax burden of roughly 35%. It also says nearly 80% of licensed businesses have fallen behind on local taxes and collectively owe about $400 million, much of it from penalties and interest.
According to the campaign, city marijuana tax revenue has declined from a peak of $123.5 million in 2021 to roughly $73 million.
The plan would pair the tax reductions with increased enforcement against unlicensed marijuana businesses.
Raman proposes creating a dedicated task force responsible for cases from the initial complaint through closure, while coordinating with the Los Angeles Police Department and other agencies when necessary.
The city would also seek to remove unlicensed marijuana businesses from platforms including Google Maps, Weedmaps and Yelp and use state licensing records, utility information and other data to identify suspected illegal stores.
Property owners that allow unlicensed marijuana businesses to continue operating could face escalating enforcement, including daily administrative fines, utility disconnection, liens and civil nuisance actions. Raman’s proposal notes that the city already has authority in some circumstances to pursue penalties of up to $20,000 per day.
The proposal also calls for changes to the licensing system, including assigning applicants a single case manager to help navigate the city process and offering bridge financing to qualifying social equity applicants.
Licensed operators with clean compliance records would eventually move from annual renewals to three-year renewal periods.
Raman also wants to loosen restrictions affecting the eventual sale of social equity marijuana businesses. Her proposal would retain protections against acquisitions during an operator’s early years but allow owners to sell their businesses to other buyers after a specified holding period.
Another major component of the plan focuses on marijuana consumption businesses and events.
Raman proposes piloting cannabis cafe licenses before Los Angeles hosts the 2028 Olympic and Paralympic Games, while establishing standards designed to protect workers and neighboring properties from secondhand smoke.
The city would also expand opportunities for licensed businesses to hold cannabis events and consumption experiences and participate in other activities already allowed under California law without requiring separate, costly approval processes for each activity.
The proposal represents one of the most detailed marijuana policy platforms released so far in the Los Angeles mayoral race.
