2022 R23 – Cannabis Taxation Revenue Sharing with Local Governments

Whereas BC local governments have yet to receive a share of provincial cannabis taxation revenue, despite the federal government’s decision to increase the provincial share of cannabis excise tax revenue by 25 per cent in recognition of the costs and responsibilities assumed by local governments;

And whereas the provincial government continues to enjoy growing taxation revenue from cannabis sales in local communities without sharing any of that revenue with local governments in spite of evidence of substantial one-time and incremental costs incurred by local governments associated with the legalization of non-medical cannabis detailed in findings from UBCM’s 2019 cannabis cost survey:

Therefore be it resolved that UBCM urge the provincial government to commit to negotiating a cannabis taxation revenue sharing agreement with local governments that honours the intent of the federal excise tax revenue sharing scheme and addresses local government short- and long-term costs associated with the legalization of non-medical cannabis.