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AUMA extraordinary resolution calls for cannabis property taxation changes

September 5, 2018

AUMA members will be asked to vote on an extraordinary resolution at the 2018 AUMA Conference calling on the province to make immediate changes to ensure municipalities can fairly assess and tax cannabis grow operations.  The resolution can be found in the updated Resolutions Book.

Changes to the Municipal Government Act and the associated Matters Relating to Assessment and Taxation Regulation will result in the taxation of all farm buildings being phased out over the next five years. This is a serious issue with regard to cannabis grow operations, as many of the facilities under development across the province are industrial-scale structures with much of the assessment value tied up in buildings. Currently, there is a lack of clarity in the Regulation as to whether these structures would fall under the “farm building” definition.

Given that cannabis grow operations are industrial-scale operations that represent considerable municipal servicing costs, changes are necessary to ensure they are assessed and taxed at fair market value. Without these changes, homeowners and other businesses will be forced to absorb the cost of servicing grow operations through their property taxes.