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Cannabis and Property Classification

Cannabis and Property Classification

 

As of October 17, 2018, recreational cannabis will be legal in Canada

On April 1, 2014, "medical marihuana" (cannabis) became legal for authorized users, however, users must purchase it from a licensed producer.  A licensed producer may possess, sell, provide, ship, deliver, transport, destroy, produce, export and/or import cannabis for medical purposes.  The medical cannabis program is overseen by the Federal Government and specific details may be found under the Marihuana for Medical Purposes Regulation.

What is medical cannabis production?

The Federal Government stipulates that medical cannabis can only be grown and sold by "licensed producers", production must be indoors, and it is subject to strict personal and physical security requirements. Production may involve packaging, labeling and shipping. More information regarding the Federal Government’s Marihuana for Medical Purposes Regulations (MMPR) may be found at: http://www.hc-sc.gc.ca/ahc-asc/media/nr-cp/_2013/2013-79bk-eng.php

Does medical or recreational cannabis production qualify for farm class?

In October, 2018, the Government of British Columbia amended the Classification of Land as a Farm Regulation (B.C. Reg. 411/95), as per the Assessment Act, to exclude the production of any of the following from qualifying for farm classification for property assessment and property taxation purposes. Other than the production of industrial hemp in accordance with the Industrial Hemp Regulations under the Controlled Drugs and Substances Act (Canada):

      (i)  cannabis within the meaning of the Cannabis Control and Licensing Act whether or not the cannabis is medical cannabis within the meaning of that Act;

     (ii)  a substance or product derived or produced from a cannabis plant within the meaning of the Cannabis Control and Licensing Act.

As a result, cannabis facilities/production will not qualify for farm classification effective for the 2019 Assessment Roll and all future assessment rolls.

How are cannabis facilities classified as property?

BC Assessment classifies all properties based on the Assessment Act and all related regulations. Cannabis production properties will be assessed and classified accordingly.

Furthermore, the provincial government’s regulatory change only applies to the classification of activities related to the production of cannabis. If there are other qualifying farm activities on the land or in another building, these separate activities continue to qualify for farm class for that portion of the property as per the Classification of Land as a Farm Regulation (B.C. Reg. 411/95). Split classifications are common for properties that have more than one use.

For more information:

If you have any questions about cannabis production and property classification, please contact BC Assessment at:

Telephone: 1-866-valueBC (1-866-825-8322)
Email: bcacustomer.services@bcassessment.ca
Website: www.bcassessment.ca


Updated 10/2018
Disclaimer: Where information presented is different from legislation, legislation shall prevail.

  
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