Pubdate: Sat, 27 Aug 2016
Source: Globe and Mail (Canada)
Page: S3
Copyright: 2016 The Globe and Mail Company
Contact:  http://www.theglobeandmail.com/
Details: http://www.mapinc.org/media/168
Author: Linda Givetash

THREE CITIES WANT SHARE OF MARIJUANA TAX

Three municipalities in British Columbia want a stake in any tax 
revenue that the federal government collects from the legalization of 
marijuana.

Nelson, Duncan and Prince George put forward resolutions to the Union 
of British Columbia Municipalities asking it to put pressure on 
higher levels of government to ensure tax-sharing with municipalities 
is considered by the federal task force investigating marijuana 
legalization and regulation.

With eight dispensaries open in Nelson, Mayor Deb Kozak said 
determining how to regulate and monitor the technically illicit 
businesses has required considerable city and police resources.

"There is a real cost attached to that and we are not realizing any 
revenues from [the marijuana] industry at this time," Ms. Kozak said.

The federal government established a task force to create new 
legislation and regulation on marijuana that is expected to be 
announced next spring.

Duncan Mayor Phil Kent said the lack of certainty on the new laws 
has, in the meantime, left municipalities to create different local 
bylaws and licences in order to control the dispensaries popping up 
in their communities.

Although the city of Duncan opted to prohibit dispensaries until the 
federal legislation is announced, Mr. Kent said local governments 
should be compensated with tax revenue if they have to shoulder some 
of the burden of regulating the industry.

The tax would also fund cities' overall budgets that are largely 
dependent on property taxes.

Prince George Councillor Brian Skakun said the city struggles to 
afford the growing needs of its local RCMP and a new tax stream would 
offset those costs.

Through the collective representation of the union, cities stand a 
chance of negotiating a marijuana tax scheme to ensure local services 
will benefit from legalization, Mr. Skakun said.

The city of Nelson also put forward a call for the union of 
municipalities to request the federal government consult and 
co-ordinate with local authorities while developing new federal 
legislation on marijuana.

Nelson does not issue business licences to its operating marijuana 
dispensaries, Ms. Kozak said, but the city would have to reconsider 
licensing schemes and other local bylaws when legalization happens.

As part of its resolution to the union, Nelson wants the federal 
government to give local authorities enough time to align local 
regulations with a new federal law.

"Whatever the federal government decides to do will have deep impacts 
on local governments in how we have these businesses in our 
communities," Ms. Kozak said.
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MAP posted-by: Jay Bergstrom