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 [ 420 FILE ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=370)

#  Taxing Illegality: City Hall’s Dangerous Surrender on Marijuana Enforcement

April 13 2026

Written by Jay Handal | Mihran Kalaydjian.

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420 FILE - In June, the Los Angeles City Council is advancing a ballot proposition that defies logic, undermines the rule of law, and punishes those who actually follow it.

The proposal would impose a city marijuana tax not on legal operators who already shoulder an overwhelming burden but on illegal cannabis shops operating openly across Los Angeles. The justification? That it will somehow “level the playing field.”

Let’s be clear: you do not level the playing field by legitimizing those who ignore the rules. You level it by enforcing the rules fairly, consistently, and without apology.

This measure does the opposite. It effectively codifies illegal activity, sending a dangerous message that if the City cannot control you, it will simply regulate and tax you instead. That is not governance. **That is surrender.**

Legal cannabis operators in Los Angeles already operate at a severe disadvantage. They pay inflated commercial rents due to restrictive zoning. They absorb the costs of compliance state excise taxes, licensing fees, testing requirements, packaging mandates, distribution costs, and cultivation regulations. Every dollar is accounted for, every product tested, every rule followed.

Meanwhile, illegal shops operate in the shadows or increasingly, in plain sight free from nearly all of these obligations. They sell products at dramatically lower prices because they bypass safety standards and regulatory costs. And now, City Hall is proposing to give them a path not to accountability but to quasi-legitimacy through taxation.

**The consequences are profound.**

First, this proposal rewards bad actors while penalizing law-abiding businesses that invested millions to operate legally. Why would anyone choose to comply with the law when breaking it is cheaper and now potentially tolerated?

Second, it puts public health at risk. Illegal cannabis products are not subject to testing requirements. They can contain pesticides, heavy metals, mold, and other harmful contaminants. Consumers are left exposed, often unknowingly, to products that would never pass legal safety standards.

Third, it further erodes trust in government. When laws are selectively enforced or worse, abandoned altogether public confidence collapses. Residents and business owners begin to question whether compliance is even worth the cost, and that is how institutions begin to fail from within.

**And finally, it reveals a deeper, more troubling reality: this is about revenue, not responsibility.**

Los Angeles is facing a structural budget crisis. Instead of making the difficult but necessary decisions cutting wasteful spending, prioritizing core services, restoring fiscal discipline, and demanding real accountability City Hall is looking for new ways to generate revenue, even if it means compromising basic principles of governance.

This is not a solution. It is a short-term cash grab dressed up as policy. Worse, it tells struggling legal operators that the city values easy money more than honest compliance, public safety, and market fairness.

A functioning city does not negotiate with illegality. It does not normalize it. And it certainly does not build fiscal strategy on it.

If City leaders are serious about fairness, they would shut down illegal operations, support compliant businesses, and restore integrity to the system. If they are serious about public safety, they would ensure that all products sold meet health standards. And if they are serious about fiscal responsibility, they would address the root causes of the city’s financial instability not paper over them with misguided measures.

**This ballot measure fails on all fronts.**

Voters should see it for what it is: a dangerous precedent that erodes the rule of law, undermines legitimate enterprise, weakens public confidence, and puts public health at risk.

It should be rejected decisively, and without hesitation.

**Because once a city starts taxing what it refuses to control, it is no longer governing. It is conceding failure.**

*(Jay Handal is a veteran community advocate and longtime CityWatch contributor who plays a central role in holding Los Angeles City Hall accountable. He serves as treasurer of the West LA–Sawtelle Neighborhood Council. With decades of grassroots organizing and civic leadership, Jay is a relentless voice for transparency, fiscal reform, and empowering neighborhoods to challenge waste, mismanagement, and backroom decision-making at City Hall. )*

*(Mihran Kalaydjian is a seasoned public affairs and government relations professional with more than twenty years of experience in legislative affairs, public policy, community relations, and strategic communications. A respected civic leader and education advocate, he has spearheaded numerous academic and community initiatives, shaping dialogue and driving reform in local and regional political forums. His career reflects a steadfast commitment to transparency, accountability, and public service across Los Angeles and beyond.)*

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