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

STARS transports man with gunshot wound

Reports of man involved in hunting incident air lifted out of Fairmont Hot Springs airport

When it’s all fun and games… and a little dust

An inside look at how Mainstreet Fun and Games chooses inventory

Accordion “still always big in demand”

Franz Grasegger invited to play on summer music tour with accordion

Hop downtown to hug the Easter Bunny

Easter activities across the Valley

Support through grief at hospice society

7th annual Butterfly Gala raises funds for Hospice Society of the Columbia Valley

What’s age got to do with it? B.C. couple with 45-year gap talks happy marriage

An Armstrong couple that has 45-year age gap began turning heads after being featured on show Extreme Love.

WATCH: South Vancouver Island shooting an ‘isolated and targeted’ incident, say police

One person in custody, another fled following shooting and crash on West Shore

Woe, Canada: Bruins down Maple Leafs 5-1 in Game 7

No Canadian teams left in Stanley Cup playoffs

Defence accuses officer of ‘incompetence’ in trial for B.C. man accused in daughters’ murder

Double murder trial for the Victoria father accused of killing his two young daughters continues

B.C. men challenge constitutionality of Canada’s secret no-fly list

Parvkar Singh Dulai says he received a “denial of boarding” notification under the no-fly program last May 17

Murder on B.C. property didn’t need to be disclosed before sale, court rules

Buyer had tried to break contract after learning a man with ties to crime had been murdered there

B.C.’s largest Vaisakhi festival target of threatening Facebook post: Surrey RCMP

Police say they are investigating the posts on Facebook, after local MLA forwarded screenshots

Pug life: B.C. town boasts waggish list of dog names

Freedom-of-information request lists most ‘pupular’ dog names registered in White Rock

VIDEO: Fish farming company launches $30-million vessel to treat salmon for sea lice in B.C. waters

Freshwater treatment an improvement but fish farms should be removed from sea, says conservationist

Most Read