Cannabis production facilities in Alberta will pay higher property taxes under changes announced Wednesday by the provincial government.
Growing facilities had been receiving a tax exemption as agricultural operations as they were treated as farm buildings.
Now, however, buildings that house cannabis production will be assessed at market value and taxed at non-residential rates, a government release said.
The tax change will not apply to greenhouse operations or industrial hemp cultivation and will not affect any other sectors of the agricultural industry.
Municipal Affairs Minister Kaycee Madu announced the change at the Rural Municipalities of Alberta convention in Edmonton.
Municipalities had asked for it, Madu noted.
“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 the news release.
The new rules will offer municipalities “a new revenue stream,” the release said.
The change in tax status comes into effect in the 2020 tax year.