Regina councillor says municipal marijuana sales tax could help city, if it were possible - Action News
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Saskatchewan

Regina councillor says municipal marijuana sales tax could help city, if it were possible

A Regina city councillor says a special municipal sales tax on pot could be beneficial to the community. Andrew Stevens said a special tax like that has been effective in Denver. However, Saskatchewan legislation prevents municipalities from applying a direct sales tax.

Federation of Canadian Municipalities lobbying for share of federal cannabis tax revenue

As pot legalization looms in Canada, one Regina city councillor says it's a good time to talk about how much power municipalities have and what opportunities for new revenue generation might exist. (CBC)

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'sOffice of Marijuana Policy to learn more about how that city and state hasdealt withlegalization.

The city has its own special sales tax onmarijuana and that's anticipated to bring in millionsin 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.

Coun. Andrew Stevens says he looks to Denver as an example 'because a lot of the problems that we might be anticipating here and in Regina and Saskatchewan may have already been flushed out.' (Joe Mahoney/The Canadian Press)

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 provincethat hasn't yet announced its plan for governing the sale and distribution of marijuana.

Wall said work is underway to finish the legalization framework, butissues like the legal age remainundecided. 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 forlocal governments across the country.

Money would go toward costs associatedwith legislation, such as enforcement, zoning and licensing.

Regina Mayor Michael Fougere says it's tough to plan for marijuana legalization without knowing the provincial framework around it. (Rob Kruk/CBC)

"That's why we're saying one thirdof 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," ReginaMayor MichaelFougeresaid.

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 itsown legislation, it's hardto say what will happen next."