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
Background
The Federal-Provincial-Territorial Agreement on Cannabis Taxation sees the federal government retain 25% of excise tax revenue (up to $100 million per year), with the remaining 75% or more going to provinces and territories. This reflects a federal share that was reduced by 25% in recognition of the costs and responsibilities assumed by local governments. The federal government declined to directly transfer a share of excise tax revenue to local governments, leaving that responsibility to provinces. Although some provinces did agree to share a portion of cannabis revenue with local governments, the Province of British Columbia still has not committed to a revenue sharing agreement. As of March 2024, the provincial government has earned over $326 million in excise tax revenue since the legalization of non-medical cannabis.In addition to the endorsed resolutions sponsored by the UBCM Executive (2017-SR1, 2018-SR1 and 2020-SR2), UBCM's work has included the development of short- and long-term strategies [PDF - 361 KB] (included as part of 2018-SR1), as well as a report [PDF - 845 KB] summarizing findings from UBCM's cannabis costs survey. Survey responses showed that local governments were absorbing significant one-time and ongoing costs related to cannabis legalization.
Status
The federal revenue sharing agreement has expired, although provinces and territories continue to receive their share of excise tax revenue. UBCM has delivered correspondence to the federal government requesting a direct transfer of excise tax revenue to local governments.
In August 2021, the UBCM Select Committee on Local Government Finance released its report, Ensuring Local Government Financial Resiliency, which focussed on key local government cost-drivers. In acknowledging the costs and responsibilities associated with cannabis legalization, the report recommended a “targeted consumption tax that provides local governments a share of provincial cannabis taxation revenue.”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)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)