Pubdate: Sat, 17 Sep 2016 Source: Penticton Herald (CN BC) Copyright: 2016 The Okanagan Valley Group of Newspapers Contact: http://www.pentictonherald.ca/ Details: http://www.mapinc.org/media/664 Author: Jordan Bateman Page: A10 FEDS SHOULD SAY NO TO CITY POT TAX GRAB City politicians, never shy about demanding more money from beleaguered taxpayers, are now trying to get a cut of future cannabis taxes. In last year's Liberal election platform, Prime Minister Justin Trudeau promised to legalize marijuana, touting a "new system of strict marijuana sales and distribution, with appropriate federal and provincial excise taxes applied." By leaving out the possibility of city taxes, Trudeau raised the hackles of mayors across the nation. Now the mayors are pushing back - they want a piece of the green. Later this month, at the Union of BC Municipalities (UBCM) meeting in Victoria, city politicians will debate resolutions from the Duncan, Nelson and Prince George calling on the federal and provincial governments to send a portion of marijuana taxes to local governments. The motion will likely pass, as cities are always asking senior levels of government for more money. But Trudeau and the premiers should hold firm - don't give cities any control over, or revenue from, cannabis legalization. Cities don't get a cut of alcohol or cigarette taxes, so why should marijuana be treated differently? Besides, if the pro-legalization activists are correct, cities will come out ahead by cutting policing costs. Nelson's motion notes enforcement costs will be "significantly reduced," which means property taxpayers should see savings in their local police contracts. This has been a cornerstone of the marijuana legalization argument for years: we spend too much money policing minor pot offences. Dump those efforts, save some bucks. Or, as Vancouver Mayor Gregor Robertson said, "Widespread access to marijuana for our youth, grow-ops that provide funds for organized crime, and significant costs to taxpayers for enforcement are all compelling reasons to re-examine our failed approach to prohibition." In a 2012 letter to senior governments, Robertson, along with seven other B.C. mayors, stated marijuana should be legalized because "increasing law enforcement costs also significantly impact municipal budgets our public finances will benefit from an evidence-based, public health approach to marijuana." The flip side must also be true. By legalizing marijuana, law enforcement costs will decrease, and "significantly impact municipal budgets" in a positive way. Unless the mayors have been fibbing about the reasons why police costs go up. Of course, this enforcement will only be reduced if government at all levels resist the temptation to tax marijuana at too high a rate. Tax pot like cigarettes, and the entrenched black market will never disappear. High taxes in Ontario have helped keep a contraband tobacco market afloat - costing taxpayers up to $1.1 billion per year in lost revenue. This is another strike against giving cities a share of the revenue. The more governments with their hands in the marijuana tax till, the higher the tax rate will be and the more likely the black market continues. The Trudeau government should make it clear it won't stand for local taxes, expensive business licence schemes or onerous red tape on cannabis businesses. Legalizing marijuana is perhaps the greatest tax policy experiment in the past 50 years. The end results are not entirely predictable. But it's not hard to predict that cities will keep looking for more tax dollars in every way they can. Bateman is B.C. director of the Canadian Taxpayers Federation. - --- MAP posted-by: Matt