Pubdate: Wed, 02 Jul 2014
Source: Nanaimo Daily News (CN BC)
Copyright: 2014 Nanaimo Daily News
Contact:  http://www.canada.com/nanaimodailynews/
Details: http://www.mapinc.org/media/1608
Author: Darrell Bellaart
Page: A3

MEDICAL POT TAX LOOPHOLE PLUGGED BY VICTORIA

The province has followed the city of Nanaimo's lead to plug a
potential tax loophole for medical marijuana growers.

The B.C. government will exclude federally-licensed medical marijuana
production from the list of agricultural uses that qualify for farm
classification for assessment and property tax purposes.

It was a concern for city council before medical pot producer Tilray
set up shop at a Duke Point industrial site.

"I'm very, very pleased, and it's definitely the right way to go,"
said Nanaimo Mayor John Ruttan.

"Any kind of revenue producing business that may need to rely on
protective services (should) pay their fair share for those services,
particularly in industrial situations."

In April, a Nanaimo resolution for more municipal control over medical
marijuana production was endorsed by the Association of Vancouver
Island and Coastal Communities.

The city feared applicants could apply to have such facilities
assessed as farm use by B.C. Assessment, which would significantly
lower their taxes.

The tax rate on industrial lands is considerably higher than the rate
levied on agricultural operations.

Tilray agreed to pay the higher tax rate before it
opened.

Medical marijuana is a federally-regulated product. Tilray is one of
five federally-licensed facilities now operating in B.C. Last week the
province said it will ensure local governments do not lose potential
property tax revenues from Health Canada licensed-production facilities.

The province's position takes into consideration the nature of the
highly-regulated and secure facilities, and is consistent with the
approach being taken in neighbouring Alberta, according to a statement
from the Ministry of Agriculture.

The government of B.C. will also continue to view medicalmarijuana
production as an allowable farm use within the Agricultural Land
Reserve that should not be prohibited by local government bylaws.

It's said to be consistent with the government's interpretation of the
Agricultural Land Commission Act.

Federal regulations for medical marijuana took effect as of April 1.
The exclusion from farm classification for property tax purposes takes
effect in the 2015 taxation year.
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MAP posted-by: Matt