Whereas BC local governments have yet to receive a share of provincial cannabis taxation revenue, despite the federal governments decision to increase the provincial share of cannabis excise tax revenue by 25 per cent in recognition of the costs and responsibilities assumed by local governments; And whereas the provincial government continues to enjoy growing taxation revenue from cannabis sales in local communities without sharing any of that revenue with local governments in spite of evidence of substantial one-time and incremental costs incurred by local governments associated with the legalization of non-medical cannabis detailed in findings from UBCMs 2019 cannabis cost survey: Therefore be it resolved that UBCM urge the provincial government to commit to negotiating a cannabis taxation revenue sharing agreement with local governments that honours the intent of the federal excise tax revenue sharing scheme and addresses local government short- and long-term costs associated with the legalization of non-medical cannabis.
Ministry of Finance The Memorandum of Understanding MOU that was signed January 25, 2022 lays out how the Province and UBCM will work together over a multi-year period to review the local government finance system including all 20 UBCM recommendations from UBCMs 2021 paper. Examining cannabis revenue sharing is part of the plan, and the working group that has been formed under the MOU process anticipates will look at cannabis revenue sharing as part of that process. Representatives from the working group 5 from UBCM and 5 provincial officials agreed to initially focus on issues such as housing and homelessness, emergency management, transit, and community safety. Cannabis prices appear to be declining while the legal market continues to mature, and it is difficult to make long-term revenue predictions in this period of transition. As the cannabis market matures, the Province will continue to work collaboratively with UBCM through the MOU process to promote local governments financial resiliency