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)

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Minister Carole James that B.C. is still losing money on legal cannabis due to its regulatory and enforcement costs are out of date.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

(Pixabay photo)
‘Cocaine bananas’ arrive at Kelowna grocery stores after mix up from Colombia: RCMP

Kelowna RCMP recently concluded an international drug investigation after finding cocaine in local grocers’ banana shipments in 2019

Kelowna City Hall. (Michael Rodriguez - Capital News)
More development allowed around Kelowna General Hospital

Zoning for area around KGH amended to allow multi-family housing developments

This dog is going to the SPCA if its owner isn't found. (RDNO Dog Control photo)
Several ‘owners’ claim lost Vernon dog as theirs

‘Dumped’ dog being kept in foster care until rightful owner can provide evidence of ownership

Vernon North Okanagan RCMP intercepted an impaired driver Sunday afternoon, Jan. 17, 2021. (File photo by Advocate staff)
Impaired driver pulled off Vernon road thanks to public tip

RCMP Drug Recognition Expert called in for assistance in investigation of Coldstream man

Police outside a home on Leathead Road on Monday evening. (Jen Zielinski - Black Press Media)
Police presence at home near Ben Lee Park in Rutland

Several RCMP cruisers are on scene; Leathead closed between Franklyn and Hollywood

B.C. Representative for Children and Youth Jennifer Charlesworth (Black Press files)
B.C. watchdog says mentally ill children and youth retraumatized in hospital

The number of children held under the Mental Health Act has increased an alarming 162 per cent in past decade

Cranbrook Food Bank coordinator Deanna Kemperman, Potluck Cafe Society executive director Naved Noorani and Sunshine Coast Community Services Society executive director Catherine Leach join B.C.’s new Municipal Affairs Minister Josie Osborne on a video call about B.C. gaming grants, Jan. 19, 2021. (B.C. government)
B.C. gaming grants reorganized for COVID-19 priorities

Minister highlights community kitchens, food banks

A new video from NCCIH and BC Northern Health titled ‘Healing in Pandemic Times: Indigenous Peoples, Stigma and COVID-19’ was animated by Joanne Gervais. (Photo Provided By: NCCIH Archives)
VIDEO: Stigma against Indigenous people is a ‘social sickness’

A new short animated video is aiming to educate the public on the stigmatization

A pinniped was attacked by an unseen predator off the shores of Dallas Road Monday night. (Courtesy of Steffani Cameron)
VIDEO: Seal hunting, not being hunted in video shot off Victoria waterfront

Victoria woman captures footage of pinniped activity off Dallas Road

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
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

Cody Younker, Revelstoke city councillor. (Jocelyn Doll/Revelstoke Review)
Revelstoke councillor accused of sexually abusing Langley teen while school chaperone

Civic lawsuit alleges Cody Younker sexually abused student while volunteering on school trips

Prime Minister Justin Trudeau provides an update on the COVID-19 pandemic from Rideau Cottage in Ottawa on Tuesday, Jan. 11, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Prime Minister Justin Trudeau provides an update on the COVID-19 pandemic from Rideau Cottage in Ottawa on Tuesday, Jan. 11, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau vows to keep up the fight to sway U.S. on merits of Keystone XL pipeline

Canada’s pitch to the Biden team has framed Keystone XL as a more environmentally friendly project than original

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

This is one of 69 puppies and young dogs rescued from extensive abuse at a breeders home in Princeton September 2020. (SPCA photo)
Animal adoptions skyrocket during pandemic: South Okanagan BC SPCA

BC SPCA talks about caring for animals during COVID

Most Read