Workers produce medical marijuana at Canopy Growth Corporation’s Tweed facility in Smiths Falls, Ont., on February 12, 2018. THE CANADIAN PRESS/Sean Kilpatrick

Local governments should get 40 per cent of B.C.’s pot revenue: advocacy group

The Union of B.C. Municipalities has tabled a resolution asking the provincial government to provide local governments with $50 million of the projected provincial cannabis excise tax revenue.

The advocacy group for local governments in British Columbia wants the provincial government to fork over a 40 per cent share of its marijuana tax revenue when the drug becomes legal.

The Union of B.C. Municipalities has tabled a resolution asking the provincial government to provide local governments with $50 million of the projected provincial cannabis excise tax revenue of $125 million over the first two years of legalization.

Representatives from city councils across the province will vote on the special resolution next week during the union’s annual convention.

Vancouver Coun. Kerry Jang, who co-chairs a joint provincial-local government committee on cannabis regulation, says municipalities will face new costs when non-medical marijuana becomes legal Oct. 17, including policing, administrative and staffing costs related to enforcement and zoning.

Although it’s unknown exactly how much revenue will come in from pot legalization, Jang said local governments want some of the money upfront in order to avoid having to find other sources, like boosting property taxes.

“To be honest, nobody really knows what the revenues are going to be like. That’s why we’re saying look, this is for the first couple of years to get us going and then we can look at other models afterwards,” said Jang.

The resolution proposes splitting any extra revenue above the province’s projected amount evenly with local governments.

Related: B.C. towns to premier: Show us the marijuana money

Related: Ottawa willing to give more pot tax revenue to provinces to help cities

Excise tax revenue would be distributed to B.C. local governments on a per capita basis, with all municipal and regional districts receiving a minimum of $10,000, regardless of population.

Depending on how accurate the revenue projections turn out to be after two years, the resolution suggests either continuing with the same model or considering a boost in provincial sales tax on cannabis from seven per cent to a maximum of 10 per cent and committing a portion to local governments.

Jang said the model pitched by the union of municipalities is largely based on what Ontario has promised its local governments.

In December, the federal government agreed to give 75 per cent of its marijuana excise tax revenue to the provinces and territories for two years, capping its own portion at $100 million.

It’s up to the provinces and territories to determine how much of its revenue to share with municipalities and regional governments.

The Canadian Federation of Municipalities initially proposed that local governments get one third, however some provinces have already determined a different split.

In March, Ontario said it would give $40 million — or 40 per cent of its projected share of federal marijuana taxes — to help cover law enforcement and safety costs associated with pot legalization. The money would be provided to municipalities upfront, beginning before legalization takes effect. It will come from the first two years of federal excise duties on producers of recreational pot.

In a statement, the B.C. Ministry of Finance said the provincial government will bear “the vast majority” of costs to legalize cannabis.

Even after taking into account the revenue split with the federal government, the province does not expect substantial revenue from cannabis legalization in the near future, the ministry said. Its goal is to keep duties on cannabis low to stem the black market.

“We are committed to working with local authorities to understand their upfront and longer-term costs, along with any cost savings. We look forward to meeting with the UBCM executive in the near future to begin this discussion,” it said.

The ministry did not say if or when it will announce revenue sharing with local governments, or have an estimate for costs local governments will bear.

Amy Smart, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Your Mountain Minute for October 18

Golden’s weekly 60-second news recap… Continue reading

Marijuana legalization prompts closure of Nicholson dispensary

Helping people has always been top of mind for Canyon Creek Medical… Continue reading

Fatality on Hwy 93/95 near Radium

Accident by Juniper Heights shuts down highway

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

New bus route to ‘replace’ Greyhound along Trans-Canada Highway

Rider Express Transportation says they will soon begin a bus service from Winnipeg to Vancouver

Singer k.d. lang receives Alberta’s highest honour

Celebrated singer-songwriter k.d. lang received the Alberta Order of Excellence in Edmonton

Colourfully named cannabis products appeal to youth, Tory health critic says

Conservative health critic Marilyn Gladu says the Liberal government needs to do more to ensure cannabis products available online are not enticing to young people

Trial set for man charged with decades-old murder of Monica Jack

Garry Handlen accused of killing Merritt girl; also charged with Abbotsford murder

Bernardo-like sexual deviancy poorly understood, expert says

What exactly causes such deviance is not known but some evidence exists of physical brain damage to the front part of the brain

B.C. high school teacher faces sexual assault charges

A Mt. Boucherie teacher has been charged with child luring, sexual exploitation and sexual assault.

Fashion Fridays: You can never have enough shoes

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Former B.C. cop sentenced to jail ‘in the community’ after caught in Creep Catchers sting

Dario Devic pleaded guilty after getting caught up in Surrey Creep Catcher sting in Whalley in 2016

5 races to watch in B.C.’s municipal elections this Saturday

This year’s election results across more than 160 cities in B.C. will start pouring in after polls close Saturday at 8 p.m.

Annual pace of inflation slows to 2.2 per cent in September: Statistics Canada

Statistics Canada said Friday the consumer price index in September was up 2.2 per cent from a year ago compared with a year-over-year increase of 2.8 per cent in August

Most Read