Pubdate: Sat, 17 Sep 2016
Source: Penticton Herald (CN BC)
Copyright: 2016 The Okanagan Valley Group of Newspapers
Contact:  http://www.pentictonherald.ca/
Details: http://www.mapinc.org/media/664
Author: Jordan Bateman
Page: A10

FEDS SHOULD 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 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 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.

Nelson's motion notes enforcement costs will be "significantly
reduced," which means property taxpayers 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 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 B.C. mayors, stated 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, 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 go 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.

High taxes in Ontario have helped keep a contraband tobacco market
afloat - costing taxpayers up to $1.1 billion per year in lost 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 and the more likely the black market continues.

The Trudeau government should make it clear it won't stand for local
taxes, expensive business licence schemes or onerous red tape on
cannabis businesses.

Legalizing marijuana is perhaps the greatest tax policy experiment 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.

Bateman is B.C. director of the Canadian Taxpayers Federation.
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MAP posted-by: Matt