LA City Council Considers Tax Measures for June Ballot

Proposals include increasing hotel and parking taxes, as well as taxing unlicensed cannabis businesses

Jan. 27, 2026 at 4:07pm

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The Los Angeles City Council is exploring three potential tax measures to place on the June 2026 primary election ballot. The proposals include increasing the transient occupancy (hotel) tax from 14% to 16%, adding a temporary 2% supplementary charge, and raising the parking occupancy tax from 10% to 15%. The council is also considering a tax on unlicensed cannabis businesses to close a regulatory loophole.

Why it matters

These tax measures are an effort by the LA City Council to raise additional revenue for the city, which has faced budget challenges in recent years. The hotel and parking tax increases could impact tourism, while the cannabis business tax aims to level the playing field between licensed and unlicensed operators.

The details

The hotel tax increase would generate an estimated $45.3 million in additional annual revenue, with a temporary 2% supplementary charge from 2027-2028 projected to bring in $89.3 million. The parking tax hike is expected to generate $67.3 million. The cannabis business tax could bring in $60-$80 million per year, though revenue would likely decrease over time as illegal operators are shut down.

  • The City Council will discuss the proposals on Tuesday, January 27, 2026.
  • The intent is to place the measures on the June 2026 primary election ballot.

The players

Matt Szabo

City Administrative Officer

Diana Mangioglu

City Treasurer and Director of Finance

Los Angeles Office of Finance

Projected the cannabis business tax could generate $60-$80 million annually

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What’s next

The City Council will decide which proposals to advance and instruct the City Attorney's Office to draft ballot language to place them on the June 2026 primary election ballot.

The takeaway

These tax measures reflect LA's efforts to generate more revenue to address budget challenges, though the increases could impact tourism and the cannabis industry. The council is also exploring additional tax proposals for the November 2026 ballot.