For CFOs: Cannabis Costs Survey

UBCM, in collaboration with GFOABC, has released a survey seeking to examine local government costs related to cannabis legalization. The data collected will support UBCM’s discussions with the Province regarding cannabis excise tax revenue sharing, so that local government implementation costs are not funded through the property tax. 

Quantifying incremental expenditures associated with cannabis legalization has been of interest to several provincial governments, including British Columbia. To best accomplish this goal, UBCM, with input from GFOABC, has developed a model to provide consistency with regard to types of costs and facilitate analysis of information based on various criteria (e.g. size of local government, expenditure type, etc.).

The survey has been designed to report on expenditures for the 3-year period, 2018-2020. The 3-year period was selected recognizing that there are incremental costs (e.g. application review, licensing, bylaw development, etc.) that may not be incurred until at least 2020. Reporting for 2018 is to be based on actual expenditures, while 2019-2020 reporting is to reflect budgeted expenditures.

To ensure responses are provided in a consistent manner, please see the accompanying documents for more information on how to complete the survey:

Overview of Local Government Tracking Model for Incremental Costs Associated with Cannabis Legalization

Local Government Guide for Recording Incremental Costs Associated with Cannabis Legalization 2018-2020

Information regarding cannabis excise tax revenue sharing and advocacy to date may be found on UBCM’s cannabis regulation webpage.

Completed surveys should be sent to Bhar Sihota, UBCM Policy Analyst, no later than June 1, 2019.

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