Langley City hits up province for share of pot revenue

Langley City hits up province for share of pot revenue

The province says it understands municipalities will face extra costs when marijuana is legalized.

Langley City has been told to chill when it asked the provincial government to split the cannabis tax revenue with municipalities.

The City lobbied the B.C. government for half of the provincial share of the pot tax revenues to pay for the effects of legalization.

“It is anticipated that legalization of cannabis sales will entail additional costs for local governments with respect to policing and fire services, building codes, planning, licensing and standards, communications, legal services, public health and social services,” said Kelly Kenney, the City’s corporate officer.

The province’s reply was not to expect much.

“The federal and provincial governments intend to keep cannabis taxes low to support the objective of reducing illicit market activity,” B.C. Finance Minister Carol James said in her reply letter. “As such, it is expected that cannabis taxation revenues will not generate significant provincial revenues.”

The provincial and federal governments have agreed to a 75/25 split. The federal government’s 25 per cent split is capped at $100 million in tax revenue annually. Anything above that would be given to the provinces.

The proposed tax rate would be $1 per gram or 10 per cent of the final producer’s selling price, whichever is higher.

Langley City wrote to the province at the request of the District of Kelowna which wants local government to lobby for the revenues to cover the varied impacts of the marijuana legalization coming in July.

“The province recognizes that the legalization of cannabis will lead to additional costs for local governments,” James noted. “We will be able to have more informed discussions once full details of the regulatory and taxation regimes are known and governments have more certainty in terms of expected future costs and revenues.”

James noted that B.C. has created the Joint Provincial-Local Government Committee on Cannabis Regulation with the Union of B.C. Municipalities (UBCM) to work out such arrangements.

Langley CityLegalized Marijuanamarijuanataxes

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

Just Posted

Abbotsford’s Patna Sweets and Restaurant has been awarded the Frontline Excellence Award at the 2020 Abbotsford Business Excellence Awards.
Abbotsford’s Patna Sweets and Restaurant wins Frontline Excellence Award

Local business recognized for its leadership and grace to aid Abbotsford during the pandemic

Lefeuvre Road, near Myrtle Avenue, was blocked to traffic on Thursday (Dec. 3) after an abandoned pickup truck was found on fire. Police are investigating to determine if there are any links to a killing an hour earlier in Surrey. (Shane MacKichan photo)
Torched truck found in Abbotsford an hour after killing in Surrey

Police still investigating to determine if incidents are linked

Abbotsford’s Zone Garage Fraser Valley won the Community Contribution Award at the 2020 Abbotsford Business Excellence Awards. (John Morrow/Abbotsford News)
Abbotsford’s Fraser Valley Zone Garage wins Community Contribution Award

Local business wins big at the 2020 Abbotsford Business Excellence Awards

The best in Abbotsford business was recognized on Thursday morning.
VIDEO: 2020 Abbotsford Business Excellence Awards

Best in local business honoured on Thursday morning in virtual ceremony

Dan Kononoff (left) and Dan Buhler recently announced the merger of Clearbridge Business Solutions and unetworks, including with a YouTube video.
Two competing Abbotsford IT companies announce merger

Clearbridge and unetworks join forces as Clearbridge Business Solutions

Surrey Pretrial centre in Newton. (Photo: Tom Zytaruk)
Surrey Pretrial hit with human rights complaint over mattress

The inmate who lodged the complaint said he needed a second mattress to help him manage his arthritis

A coal-fired power plant seen through dense smog from the window of an electric bullet train south of Beijing, December 2016. China has continued to increase thermal coal production and power generation, adding to greenhouse gas emissions that are already the world’s largest. (Tom Fletcher/Black Press)
LNG featured at B.C. energy industry, climate change conference

Hydrogen, nuclear, carbon capture needed for Canada’s net-zero goal

An RCMP officer confers with military rescuers outside their Cormorant helicopter near Bridesville, B.C. Tuesday, Dec. 1. Photo courtesy of RCMP Cpl. Jesse O’Donaghey
Good Samaritan helped Kootenay police nab, rescue suspect which drew armed forces response

Midway RCMP said a Good Samaritan helped track the suspect, then brought the arresting officer dry socks

People line up at a COVID-19 assessment centre during the COVID-19 pandemic in Scarborough, Ont., on Wednesday, December 2, 2020. Toronto and Peel region continue to be in lockdown. THE CANADIAN PRESS/Nathan Denette
COVID-19 vaccine approval could be days away as pressures mount on health-care system

Many health officials in regions across the country have reported increasing pressures on hospitals

(Needpix.com)
Pandemic has ‘exacerbated’ concerns for B.C. children and youth with special needs: report

Pandemic worsened an already patchwork system, representative says

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

The Integrated Homicide Investigation Team is investigating after a 30-year-old woman died in a Newton alley early this morning after being found with gunshot wounds in a vehicle. The incident happened in the 13700-block of 75A Avenue. (Photo: Lauren Collins).
Woman, 30, dead after early morning crash, shooting in Surrey

Surrey RCMP looking for vehicle, video surveillance in area of 13700-block of 75A Avenue

Most Read