Pubdate: Thu, 26 Jun 2014
Source: Chief, The (CN BC)
Copyright: 2014 Whistler Printing & Publishing
Website: http://www.squamishchief.com/
Details: http://www.mapinc.org/media/2414
Author: David Burke
Page: A3

NEW MARIJUANA TAX RULES WELCOMED

Licensed grow ops to be taxed as industrial users in B.C.

A local lawmaker this week welcomed the B.C. government's move to
exclude federally licensed medical marijuana grow operations from the
list of farm uses for taxation purposes.

The decision, announced in a statement on Tuesday (June 24), aims to
ensure that local governments do not lose potential property tax
revenue from Health Canada-licensed facilities, government officials
said.

The move "is consistent with the approach being taken in neighbouring
Alberta," officials said.

Coun. Patricia Heintzman said the decision is a good one for Squamish
and other local governments in B.C., who had expressed concern that
they could face a significant loss of tax revenue if medical marijuana
grow ops were classified as farm uses even when located on land zoned
for industrial purposes.

"Our concern was that if we're allowing it in industrially zoned
areas, it would be taxed at an agricultural rate. That would be
significantly lower," Heintzman said. "This [recent decision] is a
good thing for the district."

District of Squamish officials confirmed the tax rate for farm uses is
lower than for industrial ones. As well, lower land values for farm
uses and "certain tax benefits" granted to farms would make the
overall tax paid much lower, B.C. government officials said.

However, it's difficult to say how much additional property tax the
municipality might see on a given property as a result of the B.C.
government's decision, said Christine Mathews, DOS manager of
financial planning.

"We really aren't in the best position to comment on the other
potential impacts on a medical marijuana property if assessed as farm
versus light industry," Mathews wrote in an email.

In April, Health Canada enacted new regulations surrounding the
production and distribution of medical marijuana grow operations,
setting up a new regime that aims to phase out "private" grow ops in
favour of a system or larger, licensed marijuana grow operations. In
March, a federal court ruling allowed licensed users to continue to
grow their own pending a future court ruling.

However, lawmakers in Squamish and elsewhere have voiced concern that
when the new rules took effect, the Feds provided neither a framework
for shutting down unlicensed facilities nor funding for the extra
policing costs associated with the process. Heintzman said that issue
remains unresolved.

"With the new federal regime, they had no way or no money to enforce
shutting them down," she said, adding the DOS would have a difficult
time covering additional policing costs.
- ---
MAP posted-by: Matt