By ROY WOOD
Two things became clear during a wide-ranging discussion on Osoyoos business licence fees this morning: they are nearly all going up, some quite substantially; and cannabis retailing will likely be the most expensive.
Debate centred on a two-pronged report from planning director Gina MacKay, which outlined proposals to move to a “cost recovery” model for setting business licence rates in the future, and to include pot retailing as a category in the current schedule of fees.
MacKay’s report pointed out that the current business licence bylaw was created more than 20 years ago and since that time, administration costs have risen substantially. “In general, the current fees can’t begin to cover the costs of issuing business licences, let alone the costs of staff time for safety and fire inspections.”
She wrote that many BC municipalities are using a cost-recovery model, intended to recover the costs of, for example, reviewing applications, issuing and renewing licences, inspection services, costs related to RCMP call-outs and even legal fees.
The report proposes a so-called “tiered approach.” The example she provided for discussion included five levels of fees for existing business types, ranging from home-based enterprises to a category for liquor stores, cabarets, pubs and industrial uses.
The licence fees for 2019 range from $50 for the home-based business up to $300 for auto repair shops and banks.
The proposed two-year phase in would see the fees jump dramatically by 2021. For example: home-base businesses would jump from $50 to $300; bakeries, bottle depots and fitness centres from $75 to $400; hotels and motels from $150 to $500; and liquor outlets and industrial users from $100 to $1,000.
MacKay emphasized that the list of rates and potential increases as only to demonstrate the “the variety of businesses and corresponding support servicing needs.”
However, chief administrative officer Barry Romanko told the figures quoted in MacKay’s report will be reflected in the new business licence bylaw the administration will bring back to council for consideration at a meeting in the new year.
As for the second part of the report, what to do about cannabis retailing in the short term before the new licence bylaw is adopted, council was sharply divided.
Councillors CJ Rhodes and Brian Harvey argued in favour of a nominal business licence fee of $100, in line with the current cost for neighbourhood pubs and liquor stores.
Harvey said a higher fee has the feel of “sin tax” and seems “punitive” toward the cannabis retail business.
Councillors Myers Bennett and Jim King and Mayor Sue McKortoff, however, came down on the side of a more substantial fee and out-voted Harvey and Rhodes 3-2 in favour of a $500 amount, which is highest on the list of current fees by $200.
Staff will bring forward at a future council meeting a bylaw amendment establishing cannabis retail sales as a separate classification on the town’s schedule of business licence fees.