Pubdate: Sun, 18 May 2014
Source: Victoria Times-Colonist (CN BC)
Copyright: 2014 Times Colonist
Contact: http://www2.canada.com/victoriatimescolonist/letters.html
Website: http://www.timescolonist.com/
Details: http://www.mapinc.org/media/481
Author: Bill Cleverley
Bookmark: http://www.mapinc.org/mmjcn.htm (Cannabis - Medicinal - Canada)

MEDICAL POT FACTORIES TRIGGER TAX DILEMMA

Politicians Fret Over Bunker Grow-Ops and the 'Llama Loophole'

Local governments, still wrestling with how to best deal with 
applications to build fortress-like, medical marijuana grow-ops on 
agricultural land, now have to deal with a budding property tax issue as well.

Some local government representatives in B.C. are worried new medical 
marijuana grow-ops may be able to avoid paying property taxes under 
what's being called the "llama loophole."

The term dates to 2012, when a Chilliwack business owner, who had 
placed llamas on his land, successfully argued that his commercial 
property was being used for agriculture. That saw his property tax 
bill in 2013 drop to about $1,400 from the previous year's $156,800.

Juan de Fuca electoral director Mike Hicks is all too aware of the 
case. The Capital Regional District is in the process of rezoning a 
warehouse in an Otter Point industrial park - right next to Hicks's 
new Juan de Fuca administrative headquarters - for a medical grow-op.

"If the value of the property was $495,000 - $195,000 for the 
building, $300,000 for the land - the present taxes would be $7,300. 
If and when they apply [for farm status], their tax bill will be 
$172," Hicks said.

The irony is that when Hicks presented proposed regulations at the 
Capital Regional District board this past week to increase required 
setbacks for medical marijuana operations on agricultural lands in 
Juan de Fuca electoral area, he faced criticism from some directors 
who said the medical marijuana grow-ops should be sited on industrial 
property - not rural land.

Hicks said that as the Agricultural Land Commission deems the medical 
grow-ops agricultural use, he has no option but to permit them on the 
agricultural land.

By establishing 30-metre setbacks from property lines, he hopes to 
minimize impacts on neighbours and force anyone wanting to build a 
facility to go through a rezoning process so neighbours can weigh in.

Neighbouring Metchosin has taken a different course and will permit 
the medical grow-ops only on industrial land. Mayor John Ranns said 
the land commission has given municipalities latitude in dealing with 
medical grow applications.

Ranns said it makes no sense to allow a fortress-like bunker to be 
built in the middle of arable land. Establishing 30-metre setbacks 
from the property lines "doesn't do anything" to address issues, Ranns said.

"We've got a dark-sky policy in the community. That means that we try 
to discourage night time lighting as much as we can. Those things by 
law have to be completely illuminated outside. You have to have 
cameras. You have to have all of that kind of stuff," Ranns said.

"So, the obvious thing on the farmland is you don't want to disrupt 
farming activities, not only on that parcel but also on adjacent parcels."

Victoria Coun. Ben Isitt agreed with Ranns that medical grow-ops 
built to federal specifications would be more properly located on 
industrial sites.

"I think open fields of hemp and marijuana are clearly agricultural, 
but that's not allowed in Canada at the present. And I don't want to 
see these reinforced bunkers installed on our most fertile land," Isitt said.

Ranns was not aware of the llama loophole, but said it probably 
wouldn't have much of an impact in Metchosin.

"In Metchosin, the farm-tax rate is higher than our commercial tax 
rate. We recognize that the B.C. Assessment Authority, once they 
assess a farm as a farm, that it's pretty low, so that in order to 
balance the residential component of it, we actually have our tax 
rate [for farms] quite high. So for us, it wouldn't make much 
difference because the tax rate is near the industrial rate."
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MAP posted-by: Jay Bergstrom