The province is mulling more than adjustments that could hike home taxes for Alberta’s cannabis producers.
The element of a producer’s facility committed to developing cannabis is at the moment taxed at an agriculture price, which is zero in rural municipalities or counties or 20 per cent of the going price in urban municipalities.
That is in stark contrast to the portion of each and every business enterprise committed to production or packaging, which is normally assessed as light industrial.
Groups that represent municipalities say they’re losing vital home tax dollars.
They’re pushing the province to modify the regulations, with the Alberta Urban Municipalities Association (AUMA) lately passing a resolution to that impact.
Producers, on the other hand, point out cannabis is merely one more crop and argue the business has brought investment, jobs and financial diversification to the province.
Municipal Affairs Minister Kaycee Madu says he’s going to give the challenge a “hard appear.”
“Alberta taxpayers shouldn’t be accountable if these facilities are getting assessed at an inappropriate price,” he told Postmedia in an e-mail.
As such, he plans to table the challenge in September at the jobs and economy cabinet policy committee.
“We will discover the topic additional, and most likely propose suggestions for modify,” he mentioned.
‘The income is not there’
Madu’s statement is welcome news for Rural Municipalities of Alberta president Al Kemmere.
Kemmere lives just outdoors Olds, about 100 kilometres north of Calgary. The location is anything of a hub for the business, he mentioned, with “more cannabis producers than you can shake a stick at.”
“It does deliver a great income piece as far as employment goes, but … it is an item that demands to be dealt with simply because the impacts are felt by the municipality but the income is not there,” he told Postmedia.
AUMA president Barry Morishita agrees, saying it is unfair that cannabis producers spend much less tax than other companies.
“The dilemma is that they’re accessing solutions and call for infrastructure in order to operate, so the…