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
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MAP posted-by: Jay Bergstrom