City Council Meeting - 2026-01-27
Meeting Intelligence Preview
Meeting Summary
This City Council meeting focused primarily on revenue measures for the June ballot, including cannabis business tax changes, transit occupancy tax increases, and short-term rental regulations. The council voted to instruct the city attorney to draft ordinances for taxing unlicensed cannabis businesses and two TOT increase options (4%/2% and 2%/1%). Item 19 regarding Measure ULA amendments was referred to committee after significant public opposition. The council also approved ex parte communication disclosure requirements for the Charter Reform Commission.
Key Decisions (7)
Cannabis Business Tax on Unlicensed Operators
Council approved instructing the city attorney to draft a ballot measure allowing the city to collect business taxes from unlicensed cannabis businesses, closing a loophole that currently exempts illegal cannabis shops from taxation. Estimated potential revenue of up to $70 million annually, though collection challenges acknowledged.
Transit Occupancy Tax Increase Options
Council approved instructing city attorney to draft two competing TOT increase proposals: Option 1 is 4% increase until end of Olympics then 2% permanent; Option 2 is 2% increase until Olympics then 1% permanent. Also includes closing loophole on online travel platforms that pay TOT on wholesale rather than retail hotel prices.
Charter Reform Commission Ex Parte Disclosure Requirements
Council approved ordinance requiring disclosure of communications between elected officials/staff and Charter Reform Commission members. Includes protection barring criminal prosecution for incorrect form completion.
Measure ULA Amendments Referred to Committee
Council member Raman's motion to place ULA amendments on June ballot was referred to Housing and Homeless Committee and Budget and Finance Committee. Proposed amendments included fire victim exemptions, technical fixes, and 15-year exemption for new multifamily/commercial buildings.
Parking Occupancy Tax Referred to Committee
Proposed parking occupancy tax increase was referred back to Budget and Finance Committee rather than proceeding to ballot consideration.
Vacation Rental Ordinance Referred to Committee
Section 5 of item 17 regarding vacation rental ordinance was referred to Planning and Land Use Management Committee for further review of housing impacts.
41.18 Enforcement Zone Modifications
Council approved substitute resolution modifying 41.18 enforcement locations, removing two locations and adding one.
Market Signals (5)
Housing Demand
Council member Raman cited UCLA study finding LA is the most unaffordable rental market in the nation, with multifamily permits down 27% since ULA implementation, concentrated in buildings over 5 units.
Housing Demand
San Diego region reportedly building apartments at nearly twice LA's rate, with new construction up 10% while LA's plummeted 33% over three years.
Commercial Demand
Hotel industry facing headwinds cited as concern regarding TOT increases, with Olympic wage impacts and tourism slowdown mentioned by multiple council members.
Infrastructure
CAO reported over $1 billion backlog in sidewalk repair requests, $1.5 billion needed for 30,000+ access ramps, and over $1 billion in bridge repairs including four F-graded bridges requiring replacement.
Sentiment
Strong public opposition to ULA amendments with labor unions, housing advocates, and tenant organizations mobilizing against proposed changes, citing $1 billion raised and 10,000 people prevented from homelessness.