Cannabis retailers in Nelson will see their annual business fees significantly lower next year.
During Tuesday’s council meeting, city staff brought forward a motion seeking council to amend the cannabis retailer bylaw to cut the annual business fee to be in line with alcohol retailers.
Right now, cannabis retail licensees pay an annual operating fee of $2,500, which is over $2,000 more than what’s set for liquor and wine retailers at $210 per year.
The current cannabis fees were developed in 2018 when legalization was rolled out. City staff’s report to council says the fees were set higher than liquor retailers because at the time there was speculation cannabis retailers would require additional city resources for enforcement. However, that didn’t turn out to be the case.
The idea to reduce the annual fee was first brought forward in 2022 by local cannabis retail license holders.
Following the request, staff talked with neighboring communities and city departments involved in business licensing to determine whether amending the fee was feasible.
When research identified that Nelson’s cannabis fees are significantly higher than other municipalities in the region, the city agreed it was a fair request to reduce the fee to be in line with liquor and wine retail, prompting the motion to council.
City councillors had little to say about the amendment and passed the first three readings. The amendment will be formally adopted at a future meeting.
