Presentation: Business License Fee Review - Cannabis Retail Stores
A slide deck summarizing the findings of the cannabis business license fee review, regional comparisons, and staff recommendations.
Business License Fee Review - Cannabis Retail Stores
PURPOSE:
To reconsider the annual business license fee for cannabis retail stores.
DISCUSSION:
- How the fee was established
- RCMP experience with
- Fees in the Region
- Financial Implications
- Options
1. How the fee was established
- Business licence fees are established to cover the general cost of administration, bylaw enforcement, policing and the necessary reviews and inspections to related bylaws concerning business operations.
- In April 2020, a business license fee of $7,500 per year for cannabis retail stores based on anticipated costs for education and enforcement.
- Comparable business license fees were $33,000/year in Vancouver (reduced to $5000 in 2023) and $5,000/year in Victoria (now $1500 as of 2023). City of Langford’s pilot program was administered through a Request for Proposal process utilizing temporary use permits.
2. Westshore RCMP experience with Cannabis Retail Stores
Westshore RCMP provided the following responses to staff questions:
a. What issues or concerns have arisen for the Westshore RCMP regarding cannabis retail in View Royal?
There does not appear to be any concern regarding Cannabis retail stores in View Royal. There is only 1 Cannabis Store in View Royal, Rise Cannabis, which has had 5 calls for service. Nearby Songhees Cannabis Store has had 3 calls for service.
b. How many calls have there been to the cannabis retail store in View Royal?
Overall, Cannabis related files in the West Shore total 133 calls for service since January 1, 2020, of these, only 13 calls were in the View Royal jurisdiction. (The year 2020 was picked as this is when the Cannabis stores opened in View Royal).
c. Has there been increased enforcement costs with regard to the Rise cannabis retail store in View Royal since it opened around May 2020?
No
d. What has been the Westshore RCMP experience with cannabis retail stores in general?
Cannabis retail stores in general have been well managed in the West Shore with no major issues.
a. Is Westshore RCMP aware of any cannabis education campaigns that have been conducted in View Royal?
The first year Cannabis was made legal in October 2018, West Shore RCMP had a dedicated a Cannabis Education and Enforcement Officer who did run several police-led educational talks/information sessions. This position was later changed to youth outreach officer. The Government of Canada also embarked on an educational campaign regarding Cannabis. Aside from the first year Cannabis was made legal (October 2018), we are not aware of any educational campaigns.
e. What cannabis education campaigns have been conducted in View Royal?
The first year Cannabis was made legal in October 2018, West Shore RCMP had a dedicated a Cannabis Education and Enforcement Officer who did run several police-led educational talks/information sessions. This position was later changed to youth outreach officer. The Government of Canada also embarked on an educational campaign regarding Cannabis. Aside from the first year Cannabis was made legal (October 2018), we are not aware of any educational campaigns.
f. Does the Westshore RCMP recommend conducting education campaigns and who would conduct them -RCMP, Town or provide funding to others?
The public appears to be well informed about Cannabis regulations as the law was passed nearly 5 years ago. There does not appear to be a need for Cannabis education at this time.
3. Fees in the region
| Jurisdiction | Business category | Annual fee | |
|---|---|---|---|
| Central Saanich | Cannabis retail (temporary use permit only) | $100/$200 | |
| Colwood | Commercial, small/large | $125(small)/$200(large) | |
| Esquimalt | Cannabis retailer | $2000 | 2 |
| Highlands | Cannabis sales | Not permitted | |
| Langford | Commercial, based on gross floor area | One time $100-$200 | |
| Metchosin | Cannabis sales | Not permitted | |
| North Saanich | ALR Cannabis production and sale | $500 | 4 |
| Oak Bay | Retail sale of cannabis | Not permitted | |
| Saanich | Commercial, small/large | $100(small)/$200(large) | |
| Sidneya | Cannabis retail - commercial, small/large | One time $100/$200 | |
| Sooke | Commercial, small/large | $125/$250 | |
| Victoriab | Storefront cannabis retailer | $1500 | 3 |
| View Royal | Cannabis retail store | $7500 | 1 |
aplus LCRB license assessment fees bSpecial one-time rezoning fee of $7500
4. Financial implications
Business License fees
| Item Detail | Fee | Fee Description |
|---|---|---|
| Home Crafts | $50.00 | |
| Home Occupation | $100.00 | As per Bylaw No. 952 |
| Non-resident | $100.00 | |
| Commercial - small | $100.00 | Less than 464 m2 (5,000 ft2). As per Bylaw No. 952. |
| Commercial – large | $200.00 | 464 m2 (5,000 ft2) and larger. As per Bylaw No. 952. |
| Intermunicipal | $100.00 | As per Bylaw No. 952 |
| Intercommunity | $170.00 | As per Bylaw No. 952 |
| Apartments | $15 per unit (minimum $100) | As per Bylaw No. 952 |
| Pub | $500.00 | |
| Liquor sales | $300.00 | Off-site consumption. As per Bylaw No. 952 |
| Drug Paraphernalia | $2,000.00 | |
| Transfer place of business | $10.00 | As per Bylaw No. 952 |
| Late renewal of license | 10% or $25.00, minimum $25.00 | |
| Cannabis retail Store | $7,500.00 | As per Bylaw No. 1036 |
- Annual business license revenues are approximately $58,000.
- There is one cannabis retail store and the business license fee of $7,500 for this business comprises 13% of the Town’s annual business license revenue.
- While changing the fee to $2000 would have a percentage impact on annual business license revenues, the reduced revenue of $5500 would be insignificant relative to the Town’s overall revenue.
5. Options
- Maintain the existing fee of $7500 per year.
- Change the fee to $2000, the same as a drug paraphernalia business.
- Change the fee to $300, same as for liquor sales
- Change the fee to the same as regular commercial businesses, $100 for <464m² floor area and $200 for 464m²+ floor area)
Staff recommends changing the business license fees for cannabis retail stores to $2000.
If an amendment is supported, Fees and Charges Bylaw, No. 958, 2016 should be amended in time for the 2024 business license renewals to be sent out in December.
CONCLUSION:
- Staff recommends changing the business license fees for cannabis retail stores to $2000. This would match the annual fee for drug paraphernalia business, as the Cannabis Control and Licensing Act permits cannabis retailers to sell cannabis accessories.
- If an amendment to the business license fee for cannabis retail stores is supported, Fees and Charges Bylaw, No. 958, 2016 should be amended by the end of November in time for the 2024 business license renewals to be sent out in December.
RECOMMENDATION:
THAT the report titled “Review of Business License Fees for Cannabis retail Stores” from the Senior Planner dated September 6, 2023 be received for information.
Document Images
(1)