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

Four exhibits on display at Penticton Art Gallery

Indigenous art and art inspired by the pandemic are on display until Nov. 7

Two new COVID-19 cases announced in Interior Health region

The total number of cases in the region is at 533

Regional District of Okanagan-Similkameen compost project receives recognition

Federation of Canadian Municipalities names regional district for environmental leadership

More wildfire smoke to fill the Okanagan

The smoke is coming from wildfires in California but is expected to be much lighter

B.C. counts 125 new COVID-19 cases, up to 1,284 active

No new deaths or health care facility outbreaks

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. VOTES 2020: Wilkinson to stop 24-hour camping in city parks

Ban on ‘unsafe roadside panhandling’ to be enforced

West Kelowna start-up wins Emmy for virtual production on Red Bull Rampage

XR Media Group won the Outstanding Digital Innovation Award

RCMP seize guns, drugs, motorhome from Okanagan residence

Search warrant executed in relation to an ongoing investigation into drug trafficking

‘Hate will not be tolerated:’ North Okanagan mayor

City, groups speak out against racism-promoting flyers spread around town

Sound effects at play for Caravan’s Halloween event

Walk of Terror is returning, with a creepy twist

Two people injured after logging truck rolls over on North Okanagan road

Single-lane alternating traffic is in effect on Lumby-Mabel Lake Road near Birch Road

Lessons from a pandemic: How to design a nursing home that’s safe and love-filled

A look at how one care home is battling the pandemic with the social needs of the elderly in their care

Most Read