B.C. municipalities still have yet to see any revenues from cannabis (Image Credit: CFJC Today)

By Chad Klassen

B.C. CANNABIS REVENUES

‘The bills keep mounting’: Kamloops mayor hopes cannabis revenues start flowing to city soon

Jan 22, 2020 | 5:17 PM

KAMLOOPS — Nearly a year and half into legal cannabis and municipalities are still waiting for their share of the revenues. While the income expected from recreational marijuana sales are down, the City of Kamloops says it has incurred significant expenses and is eagerly awaiting to recoup some of those costs.

The province has distributed 182 licences with 140 stores operating in B.C. The revenue from those stores have been below expectations so far, but the B.C. government says they’re slowly rising.

“Revenues are starting to come up from cannabis, but there are a lot of costs associated with cannabis as well in terms of insuring we have a regulator in place to ensure organized crime money doesn’t come into our cannabis industry here in the province,” said B.C.’s attorney general David Eby.

The BC Liquor Distribution Branch, which is responsible for cannabis, indicates net income forecast has declined by $18 million from the estimated $38 million projected for this fiscal year. The province says it’s due to a delay in opening stores and lower than anticipated demand.

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B.C. government revenues from cannabis through the federal excise tax show a decline from the first two weeks of legalization, which was $1.3 million. But they rebounded throughout 2019.

This tables outlines provincial cannabis revenues collected from the federal excise tax (Image Credit: CFJC Today)

In Kamloops, there are three BC Cannabis Stores, the most government-run stores in the province, and five private stores open so far. Overall, 23 cannabis store applications have been approved, and the city wants to see the fruits of its labour.

“We have concerns. We’ve expressed those to Carole James, the Finance Minister, at UBCM. The bills keep mounting in Kamloops and they are being paid for by the taxpayers of Kamloops,” noted mayor Ken Christian. “Yet there is revenue, albeit less than they predicted.”

Eby says the province has tried to help out municipalities with some of the costs around enforcement.

“Provincially, one of the things we’ve done is take on the policing work through the community safety team that travels the province to enforce the rules around and is in the process of closing some of these illegal stores, as we have more and more illegal stores coming online,” said Eby.

Christian says, however, city time and money has been spent shutting down illegal stores as well. He feels Kamloops and other municipalities deserve at least of half of the 75 per cent the province is receiving from the federal government.

“I believe we’re incurring costs in terms of business licensing, our planning and zoning department, our police department, certainly in security, so those costs need to be compensated,” noted Christian.

The finance ministry said on Wednesday it can’t say exactly when revenues will be distributed to cities across B.C.