Marijuana Sales and Distribution Tax Sharing for Local Governments

Year
2016
Number
A3
Sponsor(s)
Duncan

Whereas the federal government plans to establish a federalprovincialterritorial task force to seek input from experts in public health, substance abuse, and law enforcement to design a new system of strict marijuana sales and distribution with federal and provincial excise taxes applied; And whereas regulation and enforcement for medicinal marijuana retail dispensaries will likely fall to the local governments once the law changes, thus creating additional burdens on local government resources: Therefore be it resolved that UBCM call on the federal government to request that a portion of any future federal or provincial tax collected through marijuana sales and distribution be shared with local governments, and that the concept of tax sharing with local governments be forwarded to the task force looking into the new system of marijuana sales and distribution, for consideration.

Provincial Response

Ministry of Finance Canada is conducting wide ranging consultations as it works towards its commitment to legalize and regulate cannabis. British Columbia is working with other provinces, territories and the Federal Government on the development of a regulatory framework that aligns with the interests and priorities of British Columbia based on key objectives: -Prioritize the health and wellness of British Columbians -Address crime and the illicit market -Protect youth -Address drug-impaired driving Taxation of cannabis is expected to be part of the strategy for effective regulation and therefore any decisions related to taxation must be made after the regulatory framework is developed. The Province provides funding to local governments through a variety of sources and programs. Any proposed transfer of tax revenue from cannabis to local governments must be evaluated in the context of the Provinces need to fund the regulatory framework and essential services impacted by cannabis, including health care, education and public safety.

Convention Decision
Endorsed