Pubdate: Thu, 15 Sep 2016
Source: Chilliwack Times (CN BC)
Copyright: 2016 Chilliwack Times
Contact:  http://www.chilliwacktimes.com/
Details: http://www.mapinc.org/media/1357
Author: Jordan Bateman

JUST SAY NO TO CITY POT TAX GRAB

City politicians, never shy about demanding more money from
beleaguered taxpayers, are now trying to get a cut of future cannabis
taxes.

In last year's Liberal election platform, Prime Minister Justin
Trudeau promised to legalize marijuana, touting a "new system of
strict marijuana sales and distribution, with appropriate federal and
provincial excise taxes applied."

By leaving out the possibility of city taxes, Trudeau raised the
hackles of spend-crazy mayors across the nation. Now the mayors are
pushing back-they want a piece of the green.

Later this month, at the Union of BC Municipalities (UBCM) meeting in
Victoria, city politicians will debate resolutions from the Duncan,
Nelson and Prince George city councils calling on the federal and
provincial governments to send a portion of marijuana taxes to local
governments.

The motion will likely pass, as cities are always asking senior levels
of government for more money. But Trudeau and the premiers should hold
firm-don't give cities any control over, or revenue from, cannabis
legalization.

Cities don't get a cut of alcohol or cigarette taxes, so why should
marijuana be treated differently? Besides, if the pro-legalization
activists are correct, cities will come out ahead by cutting policing
costs in their communities.

Nelson's own motion notes that enforcement costs will be
"significantly reduced," which means property taxpayers across the
province should see savings in their local police contracts. This has
been a cornerstone of the marijuana legalization argument for years:
we spend too much money policing minor pot offences. Dump those
efforts, save some bucks.

Or, as Vancouver Mayor Gregor Robertson has said, "Widespread access
to marijuana for our youth, grow-ops that provide funds for organized
crime, and significant costs to taxpayers for enforcement are all
compelling reasons to re-examine our failed approach to
prohibition."

In a 2012 letter to senior governments, Robertson, along with seven
other BC mayors, including Burnaby's Derek Corrigan and North
Vancouver City's Darrell Mussatto, plainly stated that marijuana
should be legalized because "increasing law enforcement costs also
significantly impact municipal budgets … our public finances will
benefit from an evidence-based, public health approach to marijuana."

The flip side must also be true. By legalizing marijuana, those law
enforcement costs will decrease, and "significantly impact municipal
budgets" in a positive way. Unless the mayors have been fibbing about
the reasons why police costs keep going up.

Of course, this enforcement will only be reduced if government at all
levels resist the temptation to tax marijuana at too high a rate. Tax
pot like cigarettes, and the entrenched black market will never
disappear-the difference in price will simply be too large for
consumers to ignore. The high taxes on tobacco in Ontario have helped
keep a contraband market afloat there-costing Ontario taxpayers up to
$1.1 billion per year in lost tax revenue.

This is another strike against giving cities a share of the revenue.
The more governments with their hands in the marijuana tax till, the
higher the tax rate will be. The higher those taxes, the more likely
the black market continues.

If anything, the Trudeau government should lay down the law on cities,
making it clear it won't stand for tricky local taxes, ridiculously
expensive business licence schemes, or onerous red tape on cannabis
businesses. Those added costs will only keep organized crime alive.

Legalizing marijuana is perhaps the greatest tax policy experiment in
Canada in the past 50 years. The end results are not entirely
predictable. But it's not hard to predict that cities will keep
looking for more tax dollars in every way they can. Trudeau should
just say no to their demands.

Jordan Bateman is the British Columbia Director, Canadian Taxpayers 
Federation. He can be reached at  This op-ed is the 
second in a series of four on B.C. municipal government issues that the 
CTF will publish in September. They can be viewed online at 
www.taxpayer.com.
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MAP posted-by: Matt