Whereas BC local governments have yet to receive a share of provincial cannabis taxation revenue, despite the federal governments 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 decline UBCMs requests to negotiate a cannabis taxation revenue sharing agreement, notwithstanding the growing body of evidence and local government support for an agreement, including but not limited to: - consistent requests for revenue sharing, with UBCM members endorsing resolutions on this topic each year for the past four years; - development of short- and long-term options for revenue sharing, as endorsed by the UBCM membership and presented to the Minister of Finance on multiple occasions; and - findings from UBCMs 2019 cannabis cost survey, indicating substantial one-time and ongoing incremental costs incurred by local governments, associated with the legalization of non-medical cannabis: Therefore be it resolved that the provincial government 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.
Minister of Finance The Province values its partnerships with UBCM and local governments. While cannabis revenue is growing modestly, initial targets for sales have yet to be realized while the costs of establishing the provincial regulation framework remain. The Province will continue to work with and listen to local governments about the cost pressures of legalization and will continue to be transparent with the public and our local government partners, as the industry grows and more legal stores open. Ministry staff are continuing discussions with the UBCM about revenue sharing and issues related to cannabis legalization.