OLDS — The Town of Olds welcomes the provincial government’s decision to allow communities to levy property taxes on cannabis-growing facilities, chief administrative officer Michael Merritt says.
The change takes effect in the 2020 tax year and it’s a big one.
Until now, cannabis-growing businesses were classified as agricultural operation.
Under the new rule announced last week, those properties will be assessed at market value and taxed accordingly, just like other commercial businesses.
Communities with big cannabis-growing operations, like Olds and Mountain View County had been lobbying for the change.
In an email, Merritt indicated it’s too early to know exactly what effect this rule change will have on town revenues.
“The town’s assessor will be reviewing and updating the assessment on the facilities,” he wrote.
“The Town of Olds is in support of the decision to ensure cannabis facilities pay taxes for municipal services, as municipalities with cannabis production facilities provide infrastructure and services to support those operations,” he wrote.
Several companies have applied to Health Canada to operate cannabis cultivation facilities in Olds. Sundial Growers is the largest. Health Canada recently approved an application by the company to add 115,000 square feet of cannabis cultivation space to its already existing 287,000 square feet of flowering room.
Sundial Growers spokesperson Elyse Nabata declined comment on the tax issue, saying it's an issue for the Alberta Cannabis Council to address “as this is an issue that affects the entire industry.”
