Council approves zoning changes to allow for retail sales and delivery of adult-use cannabis

October 25, 2023 1:02 PM

The Santa Monica City Council Tuesday approved changes to the city’s zoning code to allow for expanded retail cannabis sales, further encouraging the city’s economic recovery.

Changes include allowing for adult-use cannabis sales and delivery for the two medicinal cannabis retailers with active Conditional Use Permits issued before October 10, 2023, and approval of an Interim Zoning Ordinance that would remove certain requirements and permit retailers within the city to deliver, cultivate, and sell adult-use cannabis or adult-use cannabis products to persons 21 years of age and over.

The sales of adult-use cannabis products are subject to the cannabis business tax at 3 percent of gross receipts. The tax was recently approved as Measure HMP by 66 percent of Santa Monica voters. The tax rate may be adjusted by the council but cannot exceed 10 percent without voter approval.

As part of the city’s ongoing efforts, the council also previously directed the creation of an ordinance permitting adult-use cannabis in more areas of the city and a cannabis social equity program that may apply to these two medicinal cannabis retailers to help ensure that the communities most impacted by federal and state cannabis enforcement policies are provided an opportunity to benefit from the cannabis industry. Implementation of council direction is forthcoming.

For more information, see the staff report or view the council discussion here.

Media Contact

Tati Simonian
Public Information Officer