Kamloops to consider drop in pot shop fees, highest in Thompson-Okanagan
Kamloops is the last big city in the Thompson-Okanagan region to drop its exorbitant cannabis business license fees.
Cannabis store owners currently pay $5,000 per year for a business licence in Kamloops, but City staff now believe the steep fees weren't necessary.
"When the $5,000 fee was set, the potential impacts of retail cannabis sales were unknown," a City report reads. "It was anticipated that they would require additional resources beyond what other businesses would require, which warranted a higher fee."
The plan was to use the extra revenue for policing and bylaw enforcement.
There's been "no additional demand" with cannabis stores compared to other businesses since the steep fee was adopted in 2018, according to the report.
City council may decide tomorrow, Dec. 13, to lower the $5,000 fee to $196, bringing them in line with what liquor stores pay for a business license.
It would also put Kamloops on par with Okanagan cities.
Kelowna stores once paid $9,500 per year, but as of this year, the fees now range from $140 to $1,127 depending on the store's floor space.
Vernon adopted a policy similar to Kelowna's in January when the $2,000 business licenses dropped to anywhere between $115 to $800 per year. West Kelowna and Penticton also charge similar rates, with Penticton using a flat rate of $190.
There are currently 16 cannabis shops in Kamloops, each paying $5,000 to keep their doors open. City staff expects that to drop to just 15 stores by next year, so the $80,000 in City revenue will drop to $2,946.
City staff expect no change to overall business license revenue, however, if council votes to approve the drop in fees Tuesday.
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