Municipalities in B.C. are requesting 40 per cent of provincial tax revenue from impending retail cannabis sales to offset licensing and other costs to local governments.
This equates to $50 million of an expected $125 million for the first two years after legalization next month.
Comox Mayor Paul Ives — speaking from the 2018 Union of B.C. Municipalities convention last week in Whistler — said all Valley municipalities have incurred costs in establishing a regime for the retail sale of pot.
“There will be business licensing issues still to deal with, but we don’t have any resources dedicated to doing that,” said Ives, noting Finance Minister Carole James was on hand to discuss the topic. “There seems to be some willingness to work together on that issue going forward.”
Courtenay Mayor Larry Jangula noted widespread concern about “downstream costs” such as policing and accidents.
“That a pretty legitimate concern, I think, for everyone,” he said. “There’s a whole lot of issues.”
Whistler delegates also resolved to replace the NDP government’s proposed speculation tax on second homes. The preference, Ives said, would be a “vacancy tax” for their own purposes, rather than a province-wide tax that applies in certain areas. The proposal is essentially taxing people with recreational properties.
“That’s not really a true speculation tax,” Ives said. “But the Minister of Finance has indicated that they’re not planning to do that (step away).”
The provincial government has also brought in an employer health tax to replace the MSP.
“The impact on local governments will vary, depending on the size of their employment,” Ives said. “For Comox, it could be another 60 or 70 a year (thousand dollars). For our communities, that could represent as much as a one per cent tax increase.”
Delegates agreed to ask the province to devise a means by which this type of tax could be cost neutral so municipalities would not have to pass it onto residents. However, James has indicated government is not backing off.
“There’s an impact on local governments for 2019, because we’ll be paying not only that employer’s health tax but one more year of the MSP,” Ives said. “When new mayor and council start looking at their budget for next year, they’re going to have to either cut some services or increase taxes to pay for that. From all perspectives, local governments have one source of funding, and that’s property tax. Potentially what you’re doing is putting some of the MSP onto the property tax bill of businesses and homeowners.”
Another resolution requests a province-wide licensing regime with Airbnb owners.
“They have reached an agreement with Airbnbs so they’ll be collecting the provincial sales tax on that, and hopefully a hotel room tax as well,” Ives said.
Comox CAO Richard Kanigan, and Couns. Ken Grant and Barbara Price also attended the convention. They met with Transportation Minister Claire Trevena to advocate for more cycling infrastructure money, particularly for Point Holmes, which includes Area B. They also met with Health Minister Adrian Dix to support efforts to create more extended care beds, specifically at St. Joe’s, which has 24 beds on an interim basis that alleviates demand at the new hospital.
“We’re hoping they’ll support more of those kinds of beds at St. Joe’s,” Ives said. “As time goes on, that’s an important part of our community.”
Along with Jangula, Courtenay delegates included CAO David Allen, and Couns. Bob Wells and Doug Hillian. The Cumberland contingent consisted of Mayor Leslie Baird, all of council and CAO Sundance Topham.
Jangula said Courtenay made some headway on a possible bypass at Ryan Road, which is a provincial roadway.
“There’s a problem with people crossing at Cowichan (Avenue),” Jangula said, noting previous ideas about a traffic light. The problem, however, is difficulties created by stopping trucks in winter. Considering the dangers of an underpass and expense of an overpass, Jangula suggests a sidewalk on the south side of Ryan near Lerwick.
Another lane at the 17th Street Bridge crossing would help right turns towards Comox, he added.
“The first item they’re (Transportation Ministry) going to look at, I believe, is making the bypass a four-lane road,” Jangula said.
The Comox delegation also updated Indigenous Relations Minister Scott Fraser about ongoing dialogue with the K’ómoks First Nation, with whom the Town signed a Memo of Understanding in 2012.
The MOU involves land outside of the Northeast Woods.
“There are still broader issues around treaty settlement for KFN, which include lands in other parts of the Comox Valley,” Ives said.
