At Quesnel City Council’s last meeting on Sept. 18, Mayor Bob Simpson shared with council a cannabis tax revenue sharing strategy, which was proposed at the Union of British Columbia Municipalities convention in Whistler.
The resolution was presented late from the UBCM executive, and the recommendations include a short-term, two-year revenue sharing agreement between the provincial government and local governments, as well as a longer term strategy.
The proposed model has already been adopted in Ontario. The province is projecting an $125 million incremental revenue from cannabis sales in the first two years of legalization. The recommendation proposes that 40 per cent– $50 million – would be provided to local governments in B.C. on a per capita basis, with 50 per cent of that provided up front to assist with preparations and the remaining 50 per cent provided in the second year.
Any revenue above $125 million would be shared 50-50 between the Province and local governments.
Longer term, the revenue stream would be re-evaluated.
Mayor Simpson pointed out that the per capita revenue sharing would have to be followed up on for cities like Quesnel, where around 50 per cent of the population lives outside the municipality, in the Cariboo Regional District.
“I think it’s fair to say most of the impact is going to accrue to the municipality for this, and the CRD will be given a per capita allocation – if it just accrues to the CRD central, the argument could be made that we will not be getting our fair share.”
Simpson said he would bring that point to the CRD in discussion of the resolution.
Council endorsed the UBCM resolution, with Coun. Scott Elliott opposed, after he questioned the 40 per cent – rather than 50 per cent or higher – revenue sharing with the Province.
READ MORE: Council set to allow sale of recreational cannabis in Quesnel
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