Money: Alberta's cannabis growers must now pay property taxes to rural municipalities - - PressFrom - Canada
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Money Alberta's cannabis growers must now pay property taxes to rural municipalities

10:11  14 november  2019
10:11  14 november  2019 Source:   calgaryherald.com

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Commercial cannabis producers in Alberta will have to start paying property taxes , a move that is being welcomed by Alberta municipalities . The provincial government announced the change Wednesday at the Rural Municipalities of Alberta convention in Edmonton.

Towns, counties and other municipalities will be allowed to charge cannabis growers commercial property tax rates in 2020, Alberta ’ s municipal affairs minister says. Municipal Affairs Minister Kaycee Madu said Wednesday the move is common-sense regulatory change Alberta

a bunch of green grass: Cannabis plants are shown at Sundial Growers facility in Olds.© Dean Pilling/Postmedia Cannabis plants are shown at Sundial Growers facility in Olds.

Commercial cannabis producers in Alberta will have to start paying property taxes, a move being welcomed by Alberta municipalities.

The provincial government announced the change Wednesday at the Rural Municipalities of Alberta convention in Edmonton. Municipal Affairs Minister Kaycee Madu said as of the 2020 tax year, cannabis producers will no longer be classified as agricultural businesses and so won’t qualify for a tax exemption.

“This change responds directly to the concerns of municipalities, who asked for this distinction in provincial tax regulations. While cannabis is a burgeoning industry, it is important that cannabis-production facilities — which are heavy users of municipal services — pay their share for those services,” Madu said in a news release.

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Alberta removes indoor cannabis producers’ agricultural tax exemption starting in 2020. Change in tax distinction for pot growers follows request by “While cannabis is a burgeoning industry, it is important that cannabis -production facilities – which are heavy users of municipal services – pay

EDMONTON – Municipalities in Alberta are to get a new source of revenue next year when commercial cannabis producers start paying property taxes . Municipal Affairs Minister Kaycee Madu says cannabis growers will no longer be classified as agricultural businesses and so won’t qualify for

Prior to the legalization of cannabis, commercial cannabis businesses did not exist. Since legalization on Oct. 17, 2018, cannabis-growing facilities have been treated as farm buildings and received a tax exemption as agricultural operations. However, municipalities with large cannabis production facilities within their boundaries have been lobbying for a change to the tax law.

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“(We) welcome this announcement, as we’ve been asking the government to put cannabis-production facilities on equal footing with other industrial businesses since legalization,” said Al Kemmere, president of the Rural Municipalities of Alberta and an elected councillor for Mountain View County. “I’m glad the government listened to our concerns and acted swiftly.”

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Alberta removes indoor cannabis producers’ agricultural tax exemption starting in 2020. Change in tax distinction for pot growers follows request by “While cannabis is a burgeoning industry, it is important that cannabis -production facilities – which are heavy users of municipal services – pay

The Massachusetts Grower Advocacy Council works towards responsible legislation surrounding the medical and personal growing, processing and Working with local and state governmental bodies to ensure the social welfare of commercial cannabis cultivators, home cannabis cultivators, medical

Agriculture buildings in Alberta are currently taxed at zero per cent in rural municipalities, while agricultural land is taxed at a regulated rate based on the cost of production.

The changes announced by Madu on Wednesday mean that, like other commercial facilities, buildings that house cannabis production will be assessed at market value and taxed at non-residential rates.

The tax change will not apply to greenhouse operations or industrial hemp cultivation, nor does it affect any other sectors of the agricultural industry.

— With files from The Canadian Press

astephenson@postmedia.com

Twitter: @AmandaMsteph

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