Editorial: Consider the tax implications

Concern has been shown as to taxes paid by medical marijuana production facilities

While many may think that a medical marijuana grow op will bring lots of revenue to a municipality or a regional district, that may not be the case.

It appears a Medical Marijuana Production(MMP) facility can become a farm and the resulting property taxes would be far less than if the property was classed as an industrial zone. Business taxes are generally three times that of residential and can build up the coffers in a significant way compared to a property with farm status. An example would be the proposed MMP facility in Otter Point. If it was industrial the taxes would be roughly $7,600 and if it had farm status the taxes would be $176. That is a significant difference. This could destroy a community’s tax base plain and simple.

So what is the solution? A grandfather clause?  A covenant? A case by case exemption? That is something that will have to be sorted out to ensure a municipality or a regional district isn’t short-changed by changes to zoning. While the idea of MMP facilities is a good one, all of the pros and cons haven’t yet been figured out. Rushing to allow MMP facilities may be rather short-sighted and the whole picture needs to be looked at.

Those folks growing a bit of bud in the backyard or basement, whether legal or illegal, will no longer have it sanctioned and the big industrial aspect of MMP facilities will take over.  Big brother takes over and the problem with this is that a black market will continue to exist and people will take the risk and grow illegal marijuana.

What changes? The community gets less tax money, the mom and pop growers go underground and big business takes over.

This may lead to re-consideration of support for large MMP facilities because the little guys get shafted once again.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Greater Victoria thrift shop quietly closes two locations indefinitely

Society of St. Vincent de Paul shut down Sooke and Central Saanich storefronts

Sooke councillor pitches another way to improve transit

Coun. Jeff Bateman wants free passes for youth on local routes

Severe thunderstorm watch in effect for Greater Victoria

Thunderstorm may produce strong wind gusts, large hail and heavy rain, warns Environment Canada

Sooke couple that owned Sooke Harbour House given $4 million after lengthy court case

B.C. Supreme Court rules in favour of Frederique and Sinclair Philip

Local MP Elizabeth May likes aspects of throne speech, but questions execution

According to May nobody is as ‘reckless’ as BC’s John Horgan in dismissing snap election

B.C. reports 91 new cases as officials remain worried over ‘clusters of COVID-19

There have now been a total of 8,395 cases in B.C. since the pandemic began

Canada’s active COVID-19 cases top 10,000 as daily new cases triple over the past month

Dr. Tam repeated her warning to young people, who have made up the majority of recent cases

First 8 months of fatal overdoses in B.C. have now exceeded 2019 death toll

Nine people died every two days in August, BC Coroners Service data shows

Liberal effort to reset policy agenda panned by rivals as too much talk, not action

Trudeau said it’s ‘all too likely’ families won’t be able to gather for Thanksgiving next month

‘Show us the money’ for cannabis, local governments tell B.C.

Municipal tax, transit revenues falling as costs rise

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cops for Cancer: COVID-19 can’t stop Tour de Rock

‘having the chance to come back and ride this year means everything to me’

People ‘disgusted’ by COVID-19 election call, B.C. Liberal leader says

Andrew Wilkinson speaks to municipal leaders from Victoria

Horgan blasts B.C. Greens for refusing youth overdose detention

Lack of support key to B.C. election call, NDP leader says

Most Read