Sooke Mayor Maja Tait, outgoing president of the Union of B.C. Municipalities, speaks to the video-conference session on member resolutions for the provincial government, Victoria, Sept. 23, 2020. (UBCM)

‘Show us the money’ for cannabis, local governments tell B.C.

Municipal tax, transit revenues falling as costs rise

B.C. local government leaders have voted almost unanimously at their annual convention to call on the province to start sharing legal cannabis revenues with them, as Alberta, Ontario and Quebec have done.

Sooke Mayor Maja Tait, outgoing president of the Union of B.C. Municipalities, was visibly frustrated as she introduced the executive’s now-annual resolution on cannabis revenue sharing. She cited sales and tax figures that show B.C. is reaping millions from its monopoly wholesale and tax revenues as cannabis stores continue to open in communities around the province.

The latest data suggest previous claims by Finance Minister Carole James that B.C. is still losing money on legal cannabis due to its regulatory and enforcement costs are out of date.

“Notably, during the most recent fiscal year, the province collected $14.4 million in excise tax revenue, more than double its projection,” Tait told delegates at the convention Sept. 23. “This current fiscal year, the province expects to collect more than $90 million in revenue from the excise tax, and the additional 15 per cent [wholesale] markup as it applies to cannabis. If this continues, the province’s cannabis-related revenue will exceed costs by a large margin.

“This is the fifth year in a row that our membership has considered this resolution, looking for an equitable share of the revenue. It’s time for them to show us the money.”

The 99-per-cent vote in favour was cast by phone or online, as the convention is being broadcast from an almost empty Victoria Conference Centre due to COVID-19 restrictions. B.C. cabinet ministers would normally be hosting hundreds of meetings with local mayors and councillors to hear their concerns directly, but that was abandoned as NDP leader John Horgan called a surprise election on Monday as the convention got underway.

RELATED: Cannabis retailers call for change in B.C. legal sales

RELATED: ‘B.C. Bud’ still underground, Horgan hopes to save it

Tait noted that Ontario has already provided $40 million to local governments, which are dealing with declining business taxes, transit fare revenues and other impacts of the pandemic.

“In B.C., UBCM’s request to negotiate a revenue sharing agreement has been repeatedly declined,” Tait said. “We were asked to prove our costs, so last year we administered a survey to quantify local costs. Survey data, when extrapolated, showed an expected $11.5 million per year in local government incremental costs for the first three years following cannabis legalization.”

Those costs include cannabis enforcement by police and bylaw officers, land use planning, licensing and other duties.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC politicscannabisUBCM

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Mark Zenko from the Gyro Club of the Albernis presents a donation of $2,720 to Chris Mellin, left, house manager at Ty Watson House Hospice and Teresa Ludvigson, executive director of Alberni Valley Hospice Society. (SUSAN QUINN/ Alberni Valley News)
Gyro Club donation comes at good time for Ty Watson House Hospice

COVID-19 has cancelled hospice society’s major fundraisers.

(BLACK PRESS FILE PHOTO)
Nanaimo man killed in Highway 4 crash

RCMP say dirt bike turned ‘suddenly’ into traffic

Port Alberni’s deepsea port was a busy place on July 14, 2020, with recreational boaters vying for attention with a logging ship, fishing vessels large and small, tugboats and more. (SUSAN QUINN/ Alberni Valley News)
QUINN’S QUIPS: ‘Port’ Alberni lives up to its deepsea name

Port Alberni’s harbour is an engaging place to stop and watch the action on the water…

Asher Brown of Port Alberni, 11, is making a name for himself in B.C. motocross action. He and his dad, Geoff Brown, started riding with Alberni Motocross Association (AVMX) at the same time. (DOUG FISK PHOTO)
Alberni Motocross signs new land deal with Mosaic

Land Use Agreement ensures continued motocross action on Cherry Creek track

The Alberni-Clayoquot Recycling Depot is located on Third Avenue in Port Alberni. (ELENA RARDON / ALBERNI VALLEY NEWS)
EDITORIAL: It’s Waste Reduction Week in Canada. What are you doing to reduce waste?

The ACRD has launched a new ACRD Collects app to assist in diverting more waste from the landfill

Port Alberni resident Holly Braker-McLaughlin captured footage of five bears playing in her yard. (SCREENSHOT)
VIDEO: Quintet of bears frolic in Alberni Valley yard

Port Alberni family was treated to a visit from some playful black bears

Jordan Naterer, an electrical engineer from Vancouver, was last seen Saturday Oct. 10. (Facebook photo)
Search efforts to resume for missing Manning Park hiker; Trudeau speaks on case

PM says he’ll do what he can to ‘nudge’ efforts to find Jordan Naterer, yet has little leverage locally

Smartphone showing various applications to social media services and Google. (Pixabay photo)
National media calling for level playing field with Google, Facebook

In Canada, Google and Facebook control 80 per cent of all online advertising revenues

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

École de L’Anse-au-sable. (Google Maps)
B.C. records first COVID-19 outbreak at school, six weeks after students return to class

Three cases of the virus have been identified at École de L’Anse-au-sable

Green Party leader Sonia Furstenau is seen as she leaves media event during a campaign stop in West Vancouver, B.C., Tuesday, October 20, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. Green leader hopes voters see value in minority government

The Greens received nearly 17 per cent of the popular vote in 2017 yet received just three seats

Local candidates Pam Alexis, Abbotsford-Mission, and Preet Rai, Abbotsford-West, look on as NDP Leader John Horgan main streets in Abbotsford, B.C., Wednesday, October 21, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. NDP takes snap election risk during pandemic in quest for majority government

Green Leader Sonia Furstenau said the election was unnecessary and irresponsible during the pandemic

Most Read