Regina councillor says municipal marijuana sales tax could help city, if it were possible
Federation of Canadian Municipalities lobbying for share of federal cannabis tax revenue
A Regina city councillor thinks a municipal marijuana sales tax could make millions for the city once pot is legalized, but there's legislation in place that would stand in the way.
Andrew Stevens spoke with Denver's Office of Marijuana Policy to learn more about how that city and state has dealt with legalization.
The city has its own special sales tax on marijuana and that's anticipated to bring in millions in 2018, he said.
"When given the power to levy special taxes on cannabis right at the point of retail, it is a boom for that municipality," Stevens said Thursday.
Currently, it wouldn't be possible for a place like Regina to implement a special tax. Saskatchewan's Cities Act prevents municipalities from applying a direct sales tax.
The Cities Act would have to be reopened if cities were to be granted that power. Stevens wants that to happen, but he isn't optimistic it will.
"The provincial government, historically at least, has been very reluctant to enable cities and municipalities generally to have more taxation powers," Stevens said.
Cities can implement a special tax through municipal property taxes — but only if it's tied to a specific service, like increased policing, a government spokesperson said in an email.
That tax could be applied to properties benefiting from that service and would have to be passed annually by the local council, said the spokesperson.
Provincial pot framework still in works
It will be up to the next premier of the province to decide if Saskatchewan imposes a sales tax on pot, Premier Brad Wall said.
"I don't personally see the government giving up its space for municipal revenue and here's why: the provincial government's already had to give some revenue to the federal government," Wall said.
"I don't think there will be a lot of money made here by governments, initially. I really don't and after that maybe they'll engage with other orders of government."
Saskatchewan is the only province that hasn't yet announced its plan for governing the sale and distribution of marijuana.
Wall said work is underway to finish the legalization framework, but issues like the legal age remain undecided. He said decisions like that should be made by the next premier.
Municipalities lobbying for share of revenue
The Federation of Canadian Municipalities has been lobbying the federal government for one third of cannabis tax revenue for local governments across the country.
Money would go toward costs associated with legislation, such as enforcement, zoning and licensing.
"That's why we're saying one third of the revenue would be important for us to cover those costs, because it goes back to the local taxpayers to pay for it, if we don't have that," Regina Mayor Michael Fougere said.
- Mayors want marijuana tax revenue to cover municipal costs tied to legalization
- Brad Wall disagrees with mayors that pot tax revenue should go to cities
The city will have to find a way to enforce laws and regulations on legalization with or without extra money, he said.
"Until the province determines what it's going to do by its own legislation, it's hard to say what will happen next."