The Santa Monica city council has enacted zoning code changes to boost economic recovery, focusing on retail cannabis sales. The revision, effective from yesterday, allows the sale and delivery of adult-use cannabis. This move will also pave the way for existing medicinal cannabis retailers with active Conditional Use Permits to sell adult-use cannabis and for new businesses to join the market, according to The City of Santa Monica press statement. 

Adult-use cannabis sales will be taxed under the cannabis business tax, which is currently set at 3 percent of gross receipts. Passed through Measure HMP with the support of 66 percent of Santa Monica voters, the city council has the power to revise the tax rate, although any increase beyond 10 percent would call for voter endorsement.

The recent decision by the council, follows attempts to create a cannabis social equity program in the city in order to provide opportunities for communities most affected by past cannabis enforcement policies. There are as yet no established details on how this program will be implemented.