Seeking a share of pot tax
Wayne Moore - Dec 13, 2017 - Biz Releases

Image: Wayne Moore
Mayor Colin Basran

Lobbying is going on behind the scenes as municipalities look to get a share of marijuana taxation.

The federal government announced Monday it would keep 25 per cent of tax revenue from marijuana sales once the drug is legalized in July of next year.

The provinces would receive the other 75 per cent.

While the City of Kelowna has no immediate plans to step up lobbying efforts, Mayor Colin Basran said efforts were underway on other fronts.

“We know UBCM is lobbying on behalf of municipalities and that is the purpose of UBCM,” said Basran.

“I know that is their top priority in regards to this issue. There is lobbying taking place on our behalf.”

Basran added during earlier submissions to UBCM and the province during their consultation period, the city lobbied for a reasonable tax share.

“I believe one-third is that reasonable share.”

The city currently receives revenue streams from gaming and traffic violation tickets. While no revenue is generated from the sale of alcohol, Basran said new marijuana legislation is a new system, being started from scratch.

“This time, we have an opportunity to get it right from the start, and that’s why we are going after our share of revenues, as we likely should for alcohol, but you have to pick your battles.”

He added until the the distribution model is finally determined, the city won’t know what additional costs it may incur.


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