More than $5K difference in pot shop start-up fees between cities mere kilometres apart

Opening a pot shop can cost a lot of money but just how much depends on the municipality, and, in B.C.'s Okanagan, the cost can fluctuate widely between neighbouring cities.

In Penticton, city staff have recommended a $5,000 annual licensing fee for pot shops in addition to a $2,500 application fee.

Less than 20 kilometres away, in Summerland, the application fee is only $1,500 and the licensing fee is $400.

"I've noticed that the more restrictive cities seem to have the higher fees," said Donald Skogstad, a criminal lawyer in Penticton who lectures on the legalization of medical and recreational cannabis.

'Regulations that make it difficult'

Vetting and policing costs are often given as reasons for the high fees, Skogstad said, but that's an argument he doesn't quite buy into.

"I'm not sure that's really going to be much of a problem because there's provincial vetting. You have to have a provincial licence, and there's quite a background check," he said.

"And the policing, well, would that be any more than a private liquor store?"

In other parts of the country, like Saskatoon, the licensing fee is as high as $20,000.

He pointed to the "political climate" as an underlying reason behind the differences in costs.

"It kind of reminds me of the safe injection site when it became legal and mandatory by the Supreme Court decision the Harper government made itvery difficult, and there wasn't a single other one opened even though it was legal," Skogstad said.

"Sometimes, you have regulations that make it difficult and make something that's not desired there impossible."

But municipalities are completely within their legal right to charge whatever they choose, Skogstad told Chris Walker, the host of CBC's Daybreak South.

"It's legitimate for them to set fees," he said.

"It's just it's hard to justify the fees.It's kind of a cash grab I think they see it as an opportunity to get some revenue."

Skogstad said he doubts the discrepancies will change any time soon.

"I think the government is happy with the situation because you're only generally able to get it online and that's directly from their store, and they don't have to share the profits," he said.

"So long as they can articulate some reason [for the fees], I think they're gonna get away with it."