Bellflower Special Meeting of the City Council November 4, 2026

The Bellflower City Council held a special study session on November 4, 2026, to review a cannabis tax and fee study prepared by RSG. The presentation described declining cannabis licenses and wholesale prices, competition from the illicit market, and Bellflower’s comparatively high retail and cultivation taxes and business fees. RSG recommended recalculating fees to reflect actual city staff costs, including reducing the initial permit application fee from about $34,824 to $14,278, lowering annual administration charges, and reducing the non-nursery cultivation tax to $13 per square foot. The study also modeled retail tax options of 6%, 7%, and 9%, and a tiered distribution tax structure.

Council discussion provided staff direction to pursue a $13-per-square-foot cultivation tax, without adding a gross-receipts component. Members also discussed a tiered distribution tax, with the emerging approach keeping 1% on the first $100 million, then applying lower rates in $50 million increments, ultimately reaching 0.25%; the discussion did not establish a formal vote. A reduction of the retail tax to 7% was supported by some members, while others favored keeping the current rate, and the transcript does not show a settled decision. Members also disagreed about authorizing a fifth dispensary versus retaining the existing limit of four. No formal motions or votes on these matters are recorded; the session was intended to guide staff on possible future changes.