The Vancouver Sun reports in its Thursday edition that the B.C. government is considering a request from municipalities for 40 per cent of the province's share of federal excise tax revenue from cannabis. The Sun's Jennifer Saltman quotes Finance Minister Carole James as being non-committal: "I'd say we're open to having that discussion. I think that's important and I'm glad for the work that they've done because it will help us in our conversations." On Thursday, Union of B.C. Municipalities (UBCM) delegates will consider a special resolution that outlines the revenue-sharing proposal. Non-medical cannabis will be legalized on Oct. 17.
The excise tax is $1 per gram or 10 per cent of the final retail price, whichever is higher, and it will apply to medical and non-medical cannabis. Provincial sales taxes will be charged on top of that.
The federal government will take 25 per cent of tax revenue, and pass the rest on to provinces and territories.
In the short term, the UBCM executive has asked for a two-year agreement that would see municipalities receive 40 per cent of B.C.'s share of federal excise tax revenue, which is expected to be $125-million over the first two years of legalization.
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