WHEREAS the implementation of the Harmonized Sales Tax in British Columbia has resulted in the sales tax charged on alcoholic beverages sold in licensed establishments changing from 15 to 12; AND WHEREAS a significant amount of police and bylaw enforcement resources are necessary to deal with the impacts from and the patrons of bars, nightclubs and other licensed establishments: THEREFORE BE IT RESOLVED that the UBCM negotiate with the provincial government to allow local governments the ability to request an additional 3 sales tax be levied on all alcoholic beverages sold in licensed establishments within their jurisdiction, and that this money be directed to the local government to help fund existing and additional policing and bylaw enforcement in relation to bars, nightclubs and other licensed establishments.
Ministry of Finance With the introduction of the harmonized sales tax HST, the provincial sales tax has been eliminated. With the elimination of the provincial sales tax, the province no longer has a mechanism to administer and enforce an additional sales tax on alcoholic beverages sold in licensed establishments. Developing new mechanisms to impose such a tax would impose a significant compliance burden on licensed establishments which was removed with the introduction of the HST and would be costly for the province to administer and enforce. The Province currently provides funding to local governments through a variety of sources and programs e.g. Towns for Tomorrow, Building Canada Fund, unconditional Small Community and Regional District Basic Grants. The government also transfers 100 per cent of net traffic fine revenues to local governments for community policing, crime prevention and other initiatives to help make communities safer. This represents over 380 million in additional revenue for local governments since 2004. The government provided in Budget 2010 an additional 69 million over the next three years in support of the justice system and to enhance public safety. As well, the Liquor Control and Licensing Branch of the Ministry of Housing and Social Development has a complement of inspectors throughout the province who work closely with police to oversee licensed establishments and it takes enforcement action against licensees when required.