Pubdate: Thu, 25 Aug 2016
Source: Province, The (CN BC)
Page: 7
Copyright: 2016 Postmedia Network Inc.
Contact:  http://www.theprovince.com/
Details: http://www.mapinc.org/media/476
Author: Kelly Sinoski

MUNICIPALITIES SEEK SHARE OF POT TAXES

JOINT EFFORT: Cities Say They Need Revenue to Cover Costs That Come 
With Legalization of Marijuana

B.C. municipalities are appealing for a share of future taxes to help 
cover the costs of regulating pot dispensaries, as marijuana appears 
set to become legal in Canada by next spring.

The cities of Duncan, Nelson and Prince George have each put forward 
resolutions to the Union of B.C. Municipalities convention next 
month, suggesting that the UBCM petition the federal government to 
provide local governments with a portion of future federal or 
provincial tax collected through marijuana sales and distribution.

Duncan's resolution also suggests the tax-sharing concept be 
forwarded to the federal task force set up to design the new 
regulatory framework for marijuana.

"We want to make sure there aren't negative impacts for 
municipalities. Different communities are dealing with it in 
different ways. It's quite a mess out there right now," Duncan Mayor 
Phil Kent said.

"If they're going to allow storefront-type dispensaries, there's 
going to be a competitive clamouring for space and we would have to 
decide where they go. We want to be part of the conversation, so if 
they have a framework that affects us, they should be providing some 
revenue to support that."

It's not the first time such a request has been made. B.C.'s 
municipal politicians voted at their 2012 convention to lobby Ottawa 
to decriminalize pot and study the benefits of taxing and regulating cannabis.

A year later, the former Conservative government decided to 
centralize Health Canada-licensed medical marijuana, which led to a 
proliferation of illegal pot shops across the province. Cities like 
Vancouver, which had 120 illegal shops at one time, and Victoria have 
already taken steps to license and regulate dispensaries, while 
others such as Duncan and North Vancouver District have refused to 
allow them at all.

Now, with legalization of marijuana looming, municipalities say they 
expect to see a surge in pot shop requests and want to ensure there's 
regulation in place.

Politicians say they have no idea yet how much money should be 
apportioned to local governments, saying it will depend on the size 
of the market, and how the system is designed.

If the pot is sold in drugstores, for instance, it would be highly 
regulated, Kent said. If it's in storefronts, it would require more 
enforcement by local municipalities. Regulation and enforcement for 
medicinal marijuana dispensaries likely will also fall to the local 
government once the law changes.

Vancouver Coun. Kerry Jang said it's going to cost local governments 
more to manage the new regime and the profits could be used to ensure 
pot is kept away from children or put into education campaigns to 
help people manage pain without medication.

Jang noted Vancouver is already spending more to control its new 
licensing scheme for pot dispensaries. The city has two licensed pot 
shops operating now, with 20 more being processed. About 50 are still 
running illegally.

"We still have to administer what new federal laws come out," Jang 
said. "It's going to mean more inspections on our part. If they want 
us to do anything with it, they're going to provide some funding."
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MAP posted-by: Jay Bergstrom