LA's staggering cannabis problem could cost the city $400M

OG article by Lester Black

October 22, 2025

Los Angeles's legal cannabis market faces collapse, with over 500 of 738 businesses owing $400M in unpaid taxes. The city proposes an amnesty program waiving penalties for payment plans, expecting to recover only $30M. Issues stem from a thriving black market, high taxes (over 40%), and regulatory costs. Advocates call the framework "unworkable." Similar problems occur statewide, with $1.3B in back taxes owed.