UBCM is engaged on a number of key policy issues related to cannabis and liquor that affect local governments. Updates on several key issues are provided below.
Cannabis Regulation
The current revenue sharing framework sees the federal government retain 25% of cannabis excise tax revenue, with the remaining amount going to provinces and territories. The federal share was reduced from 50% to 25% in recognition of the costs and responsibilities assumed by local governments. Despite the federal acknowledgement of local costs and responsibilities, the Province of B.C. and federal government have both declined to disburse a portion of their revenue to local governments or to develop a new funding arrangement that recognizes the role of local governments. The federal government, as part of the ongoing Cannabis Act review, has been unwilling to consult with local governments regarding any potential changes to this model.
As communicated through Budget 2026, the Province now expects to receive $130 million per year in cannabis excise tax revenue, in addition to revenue earned through the PST and a 15% mark-up on the landed cost of cannabis. Since the 2018 legalization of non-medical cannabis, the Province has received more than $575 million in federal excise tax revenue, in addition to the other taxes and fees it collects.
Correspondence
UBCM to Federal Ministers re Cannabis Excise Tax Agreement (Feb. 2021)
UBCM to Minister Carole James re Cannabis Taxation Revenue Sharing (Sept. 2019)
UBCM to Minister Carole James re Pre-Convention Meeting (Oct. 2019)
UBCM to Minister Carole James re Cannabis Revenue Sharing (Aug. 2018)
UBCM to Minister Carole James re Cannabis Revenue Sharing (June 2018)
Articles
Cannabis Tax Advocacy (Sept. 2019)
Deadline Extended to Complete Cannabis Cost Survey (June 2019)
For CFOs: Cannabis Costs Survey (May 2019)Documents
Findings from UBCM's Cannabis Costs Survey (Oct. 2019)
2018 UBCM Convention: UBCM Position on Excise Tax Revenue Sharing (Sept. 2018)
UBCM Short- and Long-Term Strategies for Cannabis Taxation Revenue Sharing (Sept. 2018)Local governments currently have the authority to set distancing requirements for cannabis retail stores (CRSs). The Province is considering establishing rules that would align with existing distancing requirements for liquor retail stores. Implementation of this proposal could result in a transfer of authority from local governments to the Province, which is recommending that CRSs be located at least one kilometre from each other. A significant portion of local governments have already established their own set of distancing rules for CRSs.
The Province is currently undertaking broader engagement, through the release of a discussion paper seeking input regarding the proposal for CRSs to be located at least one kilometre from each other. Local governments are encouraged to submit their feedback to the Province by December 31, 2026. Those that did not receive a copy of the discussion paper may contact the Liquor and Cannabis Regulation Branch (LCRB.Outreach@gov.bc.ca).
Articles
Feedback Sought on Cannabis and Liquor Changes (Sept. 2026)The Province has implemented three non-medical cannabis market controls: a licence cap (limit on the number of stores a company can own), and restrictions on vertical integration (ownership of stores by federally licenced producers) and tied houses (ties between a store and a production licence that would cause the store to promote cannabis from one producer over others). Prior to the 2026 provincial election, the Province had been gathering feedback on these rules, with certain attention on the licence cap. There are no changes expected prior to the Province completing its engagement regarding distancing rules.
Articles
Cannabis Policy Engagement (July 2025)
Input Sought on Cannabis Store Licence Limit (Aug. 2023)For information regarding cannabis production in the ALR, please visit the UBCM Agriculture webpage.
Liquor Policy
Building on engagement that took place in 2024, the Province is considering a less onerous risk-based approach to overcrowding for licenced establishments with on-site liquor consumption (e.g., restaurants, bars, brewpubs, nightclubs, etc.). In September, a discussion paper was released that seeks to understand how local governments establish, apply and enforce occupant loads. There is a possibility that the LCRB may consider streamlining these processes, which would impact local government processes and communities where licenced establishments operate.
Local governments are encouraged to submit their feedback to the Province by December 31, 2026. Those that did not receive a copy of the discussion paper may contact the Liquor and Cannabis Regulation Branch (LCRB.Outreach@gov.bc.ca).
Articles
Feedback Sought on Cannabis and Liquor Changes (Sept. 2026)The Province is continuing to consider a new pricing framework based on alcohol content, as opposed to the current system based on volume and beverage category. Recently, the Office of the Provincial Health Officer published a report on reducing alcohol-related harms, which recommends implementing a pricing model based on alcohol content. Changes to the pricing model have still not been determined, and it is unknown if there is a timeline for any decisions.
Documents
Living Well, Drinking Less: Reducing Alcohol-Related Harms in B.C. (May 2026)