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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AMENDING SUBSECTIONS
3.80.261.C.2, 3.80.261.C.5, AND 3.80.261.F OF THE LONG
BEACH MUNICIPAL CODE SETTING THE BUSINESS
LICENSE TAX FOR ADULT USE CANNABIS RETAILERS AT
8% OF GROSS RECEIPTS, CANNABIS CULTIVATORS AT
$15 PER SQUARE FOOT UNDER CULTIVATION AND
SUNSETTING THE PILOT TAX PROGRAM FOR ALL
CANNABIS BUSINESSES; DECLARING THE URGENCY
THEREOF; AND DECLARING THAT THIS ORDINANCE
SHALL TAKE EFFECT IMMEDIATELY
WHEREAS, on September 8, 2026, the City Council of the City of Long Beach adopted the recommendations made by the Budget Oversight Committee with respect to the Fiscal Year 2027 (FY27) Budget; and,
WHEREAS, among the recommendations by the Budget Oversight Committee for Fiscal Year 2027 was to repeal the previous one percent (1%) tax rate reduction for cannabis adult-use retailers, thereby increasing the tax rate from seven percent (7%) to eight percent (8%), which is below the maximum of twelve percent (12%); and also, setting the rate for cannabis cultivators at $15.00 per square foot under cultivation; and,
WHEREAS, on September 8, 2026, the City Council also adopted the FY27 Budget for the City of Long Beach; and,
WHEREAS, among the provisions of the adopted budget was for to add a sunset provision for the Pilot Tax Program for any cannabis business that did not apply for the program before September 8, 2026; and,
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OFFICE OF THE CITY ATTORNEY DAWN MCINTOSH, City Attorney 411 W. Ocean Boulevard, 9th Floor Long Beach, CA 90802 WHEREAS, on September 8, 2026, the City Council directed the Office of the City Attorney to prepare, on an emergency basis, an ordinance amending Long Beach Municipal Code section 3.80.261 to implement the changes to the tax rates and adding a sunset date for the Pilot Tax Program; and,
WHEREAS, on September 8, 2026, the City Council directed the Office of the City Attorney to bring the ordinance back to the City Council on an emergency basis for the September 15, 2026, meeting of the City Council; and, WHEREAS, on September 8, 2026, the City Council waived any and all provisions of the Long Beach Municipal Code that restrict an ordinance from being put on the supplemental agenda;
NOW, THEREFORE, the City Council of the City of Long Beach ordains as follows:
Section 1. Subsection 3.80.261.C.2 of the Long Beach Municipal Code is amended to read as follows:
2. Every non-medical marijuana business engaged in
marijuana retail sale or delivery within the City shall pay a business tax at a rate of up to twelve percent (12%) of gross receipts, except equity businesses who meet the eligibility criteria as stated in Section 5.92.1615, shall pay a business tax at half the rate set for non-equity businesses. The tax is set at a rate of eight percent (8%). The tax under this paragraph shall not be increased on non-medical marijuana businesses unless and until the City Council by ordinance takes action, and the tax rate shall not exceed twelve percent (12%) of gross receipts.
Section 2. Subsection 3.80.261.C.5 of the Long Beach Municipal Code is amended to read as follows:
5. In addition to the taxes set forth in paragraphs C.1., C.2., and C.4., every marijuana business, whether medical or non-medical,
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OFFICE OF THE CITY ATTORNEY DAWN MCINTOSH, City Attorney 411 W. Ocean Boulevard, 9th Floor Long Beach, CA 90802 engaged in marijuana cultivation shall pay a tax of up to fifteen dollars ($15.00) per square foot under cultivation, except equity businesses who meet the eligibility criteria as stated in Section 5.92.1615, shall pay a business tax at half the rate set for non-equity businesses. The tax which was initially set at a rate of twelve dollars ($12.00) per square foot under cultivation is set to fifteen dollars ($15.00) per square foot under cultivation.
The City Council may by ordinance increase any such tax rate from time to time, not to exceed the maximum tax rate of fifteen dollars ($15.00) per square foot under cultivation.
Section 3. Subsection 3.80.261.F of the Long Beach Municipal Code is amended to read as follows:
F. Pilot Tax Program.
1. Prior to the sunset date established below, every
medical and non-medical marijuana business engaged in cultivation and non-medical marijuana business engaged in retail sale or delivery, is eligible to apply for the Pilot Tax Credit Program to receive a tax credit of 3% upon, meeting the good standing requirements and eligibility criteria set by City Council. Under no circumstances may a tax credit result in tax at a rate less than two percent (2%).
2. Sunset Date. The Pilot Tax Program shall accept
applications for the program through September 8, 2026. Except as noted herein, the Pilot Tax Program will terminate as of September 8, 2026. Any eligible business that submitted, on or before September 8, 2026, a complete application and all necessary supporting documents to participate in the pilot program and that the City determines is qualified to receive the tax credit, may continue participating in the program without interruption.
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OFFICE OF THE CITY ATTORNEY DAWN MCINTOSH, City Attorney 411 W. Ocean Boulevard, 9th Floor Long Beach, CA 90802 Section 4. The City Council finds that this is an emergency measure and is urgently required to ensure financing for the ongoing provision of essential services and thereby preserve the public peace, health and safety of the residents of the City of Long Beach. Furthermore, the City Council finds that this ordinance must become effective prior to October 1, 2026, to ensure that all adult use cannabis retailers and cannabis cultivators immediately know the rate at which they will be taxed and to ensure that the addition of a sunset date for the Pilot Tax Program is instituted in a fair and orderly manner. On that basis this ordinance shall be passed as an emergency measure, to take effect immediately.
Section 5. Pursuant to Section 211 of the City Charter, this ordinance is an emergency ordinance duly adopted by the City Council by a vote of five of its members and shall take effect immediately. The City Clerk shall certify to a separate roll call and vote on the question of the emergency of this ordinance and to its passage by the vote of five members of the City Council of the City of Long Beach, and cause the same to be posted in (3) three conspicuous places in the City of Long Beach, and it shall thereupon take effect and shall be operative immediately.
Section 6. This ordinance shall also be adopted by the City Council as a regular ordinance, to the end that in the event of any defect or invalidity in connection with the adoption of this ordinance as an emergency ordinance, the same shall, nevertheless, be and become effective on the thirty-first (31st) day after it is approved by the Mayor. The City Clerk shall certify to the passage of this ordinance by the City Council of the City of Long Beach and shall cause the same to be posted in three (3) conspicuous places in the City of Long Beach, and it shall take effect on the thirty-first (31st) day after it is approved by the Mayor.
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802
I hereby certify that on a separate roll call and vote which was taken by the City Council of the City of Long Beach upon the question of emergency of this ordinance at its meeting of September 15, 2026, the ordinance was declared to be an emergency by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
I further certify that thereafter, at the same meeting, upon a roll call and vote adoption of the ordinance, it was adopted by the City Council of the City of Long Beach by the following vote:
Ayes: Councilmembers:
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
I further certify that the foregoing ordinance was adopted by the City Council of the City of Long Beach at its meeting of , 2026, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk
Approved:
(Date) Mayor