Taxing the pot retailers
Wayne Moore - Apr 10, 2018 - Biz Releases

Image: Nicholas Johasnsen
While Star Buds is closed now it could, possibly, open again in this downtown Pandosy location once cannabis is legalized.

The City of Kelowna may uses fees and licensing charges in order to cover the costs of enforcing new cannabis legislation, expected later this year.

Several municipalities across the province have asked the province, through the Union of BC Municipalities, for a piece of the tax revenue the province will realize once the feds legalize the use of non-medical cannabis.

During a discussion Monday on bylaw changes staff is contemplating to address the new legislation, city planner Ryan Smith was asked if the province has answered that specific request.

While he was not aware of any decisions from the province, Smith did hint at what is being contemplated.

“In terms of enforcement…staff will look to set our rezoning and business licencing fees at a level that will help us cover what we feel our enforcement and staff time costs will be in the process,” says Smith.

The cost of a business licence in the city varies, depending on type, with a current ceiling of $3,000 annually.

Smith outlined several measures staff is contemplating to include within a cannabis bylaw, many surrounding the location of retail outlets.

Council was most interested in possible “exclusion zones,” which could include Bernard Avenue and the South Pandosy business strip. Other areas could also be added.

Coun. Tracy Gray is not a fan, saying there are other ways of achieving the same result.

“Does it really matter whether there’s one store on Bernard Avenue, or whether it’s just around the corner on Water Street? I’m not sure if that makes a difference,” says Gray.

“I think where we can make a difference is to have all of those other distances that are in here away from schools and parks, and to have distances between themselves and between liquor stores. That will in fact, inevitably draw circles around areas where they won’t fit them without actually having to do an exclusion zone.”

Coun. Luke Stack said he believes it does make a difference where retail outlets are located.

While admitting not to know much about the cannabis culture, he used an alcohol analogy instead.

“If we had six alcohol outlets up and down Bernard Avenue, I would be concerned. I think it does change the flavour of the street,” says Stack.

He also suggested a potential exclusion zone include Highway 97 and the Rutland retail district along Highway 33.

Stack was also not opposed to grouping a few retail outlets together, instead of requiring a 500 metre or one kilometre non-compete zone.

Smith says staff will meet several business groups including the Chamber of Commerce and DKA for input before coming back to council with a final version for consideration.


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