WHEREAS land used for the commercial production of medical marihuana may qualify for farm classification under the Assessment Act; AND WHEREAS the commercial production of medical marihuana may occur in commercial and industrial zones; AND WHEREAS the assessment value of farmland can be significantly lower than assessment values for other property classifications; AND WHEREAS this could have a significant effect on property tax revenue for local governments: THEREFORE BE IT RESOLVED that the provincial government be requested to amend the Assessment Act and its respective regulations to preclude the commercial production of medical marihuana from qualifying for farm classification.
Ministry of Community, Sport Cultural Development Medical marihuana is an emerging industry in Canada following the new Health Canada regulations that took effect April 1, 2014. Government has made a decision that medical marihuana, and any other federally-regulated narcotic, is not eligible for farm classification for property tax purposes. Government is taking a balanced approach which takes into consideration the nature of the operation and is consistent with the taxation approach being taken in Alberta. Local governments have expressed concern about providing these facilities with farm class, which may result in loss of property tax revenue, and government has listened. This decision will ensure local governments do not lose potential property tax revenues from this new emerging industry.