Premier John Horgan speaks to delegates at Union of B.C. Municipalities convention, Vancouver, Sept. 27, 2019. This year’s convention will be a virtual affair, broadcast from Victoria Sept. 22-24. (B.C. government)

Pass the cannabis revenue, B.C. communities ask for fourth year

Union of B.C. Municipalities heads into virtual convention

Alberta, Ontario and Quebec have committed to share legal cannabis revenues with local governments, and in their fourth year of asking, B.C. municipalities expect their province to do the same.

The Union of B.C. Municipalities is preparing for its 2020 conference, a virtual event to be broadcast from Victoria Sept. 22-24. Cannabis revenue sharing with local governments is among the executive’s top priorities for the annual get-together with B.C. cabinet ministers.

The resolution notes that Ottawa increased the share of federal excise tax on legal cannabis to the provinces to 75 per cent in recognition of costs to administer and enforce legalized recreational cannabis in 2017. That agreement covers the first $100 million of excise tax revenue, and it expires in December 2020.

The federal excise tax alone was projected to bring $6 million to B.C.’s treasury as of Finance Minister Carole James’ February 2020 budget. The actual revenue received for 2019-20 was $10.7 million, and that was before B.C. received its March payment.

“The B.C. government has disbursed none of the federal excise tax it received to B.C. local governments,” the UBCM executive states. “Notably, the Ontario government allocated $40 millionof its projected $100 million cannabis excise tax revenue to local governments as part of a two-year agreement, with any revenue exceeding $100 million … to be shared 50-50 with Ontario local governments.”

The federal government also collects GST on cannabis sales, while the province charges provincial sales tax and has a 15 per cent markup on its wholesale monopoly run by the Liquor Distribution Branch.

James has repeatedly told the UBCM delegates that B.C. hasn’t produced any net revenue to share, and continues to spend more on administration and enforcement than it brings in.

RELATED: B.C. still losing money on legal cannabis sales

RELATED: No surge in pandemic pot sales, B.C. sales show

Other concerns to be aired at the UBCM convention include the additional costs to local governments from B.C.’s new emergency management legislation, including new mitigation and recovery duties after floods, fires and other natural disasters.

Another executive-endorsed resolution calls for changes to the local election law, to extend regulations on third-party advertising. It calls for the province to require all elector organizations to register, and report contributions to candidates outside election years.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislaturecannabisUBCM

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

Just Posted

SHARE: Fall in all its splendid colour arrived this week

Send us your photo showing how you view Maple Ridge or Pitt Meadows, and it could be featured soon

RCMP searching for witnesses of an assault

Man found lying along Abernethy Way

BC Liberal Leader talks drug addiction in Pitt Meadows

Drug addiction and public safety a top priority says Andrew Wilkinson

Record number of visitors hit Maple Ridge parks and trails

More than 630,000 people Apr. 1 and Aug. 31

IIO recommends no charges in Maple Ridge police shooting

Kyaw Din was killed by the RCMP during a mental health incident in August 2019

B.C.’s top doctor thanks supporters after revealing threats over COVID-19 measures

Dr. Bonnie Henry says COVID-19 has caused some people to lash out in anger and frustration out of fear

NDP, Greens divided on pace of child care improvements in B.C. election campaign

NDP Leader John Horgan recommitted to $10-a-day child care and blamed the Greens for not supporting his efforts

Wind warning for White Rock, South Surrey

Gusts up to 90 km/h expected from Richmond to Langley Friday (Sept. 25) morning

Pandemic derails CP Holiday Train

Canadian Pacific will work to get donations to food banks while also producing an online music concert

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

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Vanderhoof’s Brian Frenkel takes on top job in tough times

We can get through this, new local government leader says

Abbotsford veteran survives cancer scare, celebrates 95th birthday

Second World War veteran Andy Anderson receives socially distanced birthday party after health scare

Local councils important, Horgan says as municipal conference ends

B.C. NDP leader says ‘speed dating’ vital, online or in person

Most Read