B.C.’s Finance minister is not sounding a positive tone on whether or not a legal cannabis tax revenue sharing deal between the province and local governments is coming anytime soon.

While the Union of BC Municipalities and local governments hope for a deal before September’s annual UBCM convention Carole James appears to be throwing cold water on the idea.

“Well we certainly have been in conversation with UBCM. We have been having some very good conversations. I think to be blunt I think the challenge we face right now is there is not revenue coming in. Costs are outweighing the revenue coming in so we haven’t seen a big boom. As people will know we lowered the estimates for cannabis revenues over the next year.”

James says there are several reasons why cannabis revenues have trickled not poured in.

“There was obviously a delay in legalization it did not happen on Canada Day. You also saw the municipalities had there election in the fall, which meant you didn’t have structures in place to approve licenses. Criminal record checks still have to be gone through because ultimately we want to make sure we get organized crime out of the business of cannabis. That has delayed a number of licenses from being opened.”

James says while conversations with UBCM on a revenue sharing formula continue it will be “a bit” before any substantial cannabis revenue, and by association any revenue sharing deal with local governments, arrives.

Last fall the federal government agreed to share 75% of cannabis tax revenues with the provinces.

The Union of BC Municipalities has been in negotiations for a share of those provincial cannabis tax revenues to cover of municipal costs since early this year.

Kamloops mayor Ken Christian has said without a cannabis revenue sharing deal this fall his council and others will have to cover those costs with property tax increases.