The Town of Oliver is still waiting to see if it will get its hands on any cannabis tax revenue from the province.
Council previously wrote a letter to the Ministry of Finance requesting tax revenue from the sale of recreational cannabis after it becomes legal.
Council contends that it deserves the revenue considering its expected role in establishing and enforcing bylaws pertaining to the sale and production of marijuana in the community.
But it’s going to have to wait.
In a letter to council, Minister and Deputy Premier Carole James said once a regulatory framework is established, the province and municipal governments will determine the spending as a result of legalization.
James said the province has reached an agreement with the federal government regarding the cannabis excise tax structure and subsequent revenue sharing with the provinces.
Once that agreement is finalized the province will be in a better position to determine total revenue. James said they intend to keep cannabis taxes low to support the objective of reducing illicit market activity.
“It is expected that cannabis taxation revenues will not generate significant provincial revenues,” the minister said.
But James acknowledged that the legalization of cannabis will lead to additional costs for local governments.
