CREMONA - The Village of Cremona council has decided not to pass a motion supporting a Town of Sundre resolution regarding taxation of cannabis grow operations.
During a special council meeting on Aug. 15, Cremona council considered a request from Sundre asking for support of a resolution set to come before an upcoming Alberta Urban Municipalities Association (AUMA) conference requesting changes to provincial legislation and regulations regarding cannabis grow operations.
The Town of Sundre had made an official request that the Village of Cremona council support the resolution.
Instead of passing a motion in support of the Sundre resolution, Cremona councillors passed a motion accepting the matter as information.
CAO Luana Smith said, “They (councillors) decided that it is in the province’s hands and they will just wait to see what the province is going to do.”
The Sundre resolution calls on the provincial government to amend legislation to enable municipalities to assess and tax cannabis grow operations at fair market value.
“The Town of Sundre believes that the legalization for both medicinal and recreational cannabis will eventually affect all municipalities in Alberta, and if the legislation is not amended, our homeowners and other businesses will be left to shoulder the burden of servicing cannabis grow operations,” Cremona administration said in a briefing note to council.
In a letter sent to AUMA president Barry Morishita, the Town of Sundre said, in part, the town is “concerned with the current oversight in the matter relating to property assessment and taxation regulation that could see industrial-scale grow operations go untaxed, creating a burden on municipalities and taxpayers.
“In order to address this issue, the provincial government is required to make appropriate legislative and regulatory amendments to clearly state that municipalities are enabled to assess and tax cannabis grow operations at fair market value.”
The resolution coming before the AUMA states, in part, that, “The legalization of cannabis for both medicinal and recreational purposes has led to the development of federally licensed grow operations across Canada, including a number in Alberta. These facilities are major, industrial-scale developments consisting of large structures resembling factory environments. Given their scope and intensity of use, cannabis grow operations represent considerable municipal servicing costs.
“Despite the high cost for municipalities associated with cannabis grow operations, it is not currently clear whether they can be appropriately taxed. It is not appropriate for homeowners and other businesses to shoulder the burden of servicing cannabis grow operations.”
In a letter to Shay Anderson, minister of Municipal Affairs, and CC’d to area MLA Jason Nixon, the Town of Sundre said, in part, that, “cannabis grow operations are high-intensity land uses that heavily utilize municipal services including roads, water, sanitary sewer, etc.
“Despite this, the current assessment and taxation structure prevents the municipality from recovering funds through property taxes, which means the non-residential and residential taxpayers will be forced to subsidize these facilities.”
At a special council meeting on Aug. 14, the Town of Didsbury council passed a motion supporting the Sundre resolution.
The AUMA represents urban municipalities across the province. It advocates with the provincial government on behalf of its members.
- with files from Craig Lindsay
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