Pubdate: Wed, 25 Jun 2014 Source: Metro (Vancouver, CN BC) Copyright: 2014 Metro Canada Contact: http://www.metronews.ca/vancouver Details: http://www.mapinc.org/media/3775 Page: 5 Bookmark: http://www.mapinc.org/mmjcn.htm (Cannabis - Medicinal - Canada) NO FARM TAX BREAKS FOR MEDICAL POT GROWERS 'Different than growing mushrooms.' Province announces marijuana producers in B.C. won't get the same benefits as farmers Medical marijuana producers setting up shop in British Columbia won't be able to claim a lucrative property tax break designed for farms and other agricultural operations, the provincial government said Tuesday. Mayors in B.C. have been warning for months that commercial grow-ops could get out of paying nearly 90 per cent of their property taxes if they're lumped together with farms, even if they're operating on expensive industrial land. The province's agriculture minister, Norm Letnick, said medical marijuana facilities are complex industrial operations - and that's how they'll be taxed. "Local governments are concerned ... that there might be some extra costs associated with these facilities," Letnick said in an interview. "We're talking about a federally regulated narcotic, so it's different than growing mushrooms or cherries or tomatoes in a greenhouse." The debate over how to tax medical marijuana operations is happening as governments across the country figure out how to deal with an expected influx of such facilities. New federal rules took effect in April that shift marijuana production to licensed commercial producers, rather than patients, who were previously allowed to grow their own. An ongoing court case has meant that some patients are still growing at home, but the commercial system has proceeded. Health Canada has approved 13 producers, including five in B.C., though many more are expected to join them. There is no cap on the number of commercial growers and Health Canada is currently reviewing hundreds of applications. B.C.'s property tax rules set rates based on a list of factors, including how the land is being used. Agricultural rates are up to 87.5 per cent lower than other tax categories. Some mayors were concerned that allowing medical marijuana operations in industrial areas to claim the farm credit would downgrade the value of land that is taxed at a much higher rate. "(Tuesday's announcement) will allay the fears of a number of municipalities that could have seen a significant hit on the taxes they could collect on a valuable piece of property," said Maple Ridge Mayor Ernie Daykin. At the same time, the province also confirmed marijuana production would be considered a "farm use" within the Agricultural Land Reserve, 4.7 million hectares of protected farmland located across the province. - - The Canadian Press - --- MAP posted-by: Jay Bergstrom