St. Albert retailers could pay 25 per cent more for the right to sell tobacco products as city council is poised to increase the annual tobacco licence fee from $400 to $500.
Sitting as committee of the whole last week, council passed a motion to recommend the fee increase. The issue will be decided when the master rates bylaw comes to council on Nov. 29.
Mayor Nolan Crouse moved the fee increase. He said it’s important for two reasons.
“It’s going to be seen by some as just seeking cash. The answer to that is yes. But the second thing is that it’s a reinforcement of the need to tax the tobacco vendors in a stronger way. It’s just the way it is,” he said.
There are currently 36 businesses in St. Albert with a licence to sell tobacco, so the fee increase would generate $3,600 in extra revenue.
City administration had recommending keeping the fee at $400. Edmonton charges $194 for a tobacco selling licence and is the only other municipality in the region to charge such a fee, said city manager Bill Holtby.
“This one just shoots us up far beyond anyone else,” he said.
The motion passed by a 6-1 vote, with Coun. Cam MacKay representing the only vote against the fee increase.
“It’s pretty expensive to run a small convenience store here in St. Albert now … we’re very out of line with Edmonton in that regard,” he said.
“I also have a lot of sympathy for the small mom and pop retailer. I know that’s not a very glamorous life and it’s a pretty tight margin business,” MacKay said. “At the end of the day there’s not a lot of money that St. Albert’s going to be taking out of this [but] it’s sure a lot for little retailers.”
Coun. Cathy Heron felt the increase was justified.
“If there was somebody that wanted to open up a pure tobacco type shop then a $500 fee is not that much,” she said.
“Those facilities that have a section of their store that sells cigarettes, if they decide not to get their licence then I’m OK with that,” she added. “It’s preferable to me not to have those cigarettes available from the gas station down the street from the school. That’s where the kids are getting their cigarettes.”
Coun. Wes Brodhead agreed.
“I think it’s a reasonable statement to be made by the community,” he said.
Taran Badesha, owner of the Winks convenience store on Giroux Road, said local stores are already dealing with fees that are far greater than those in Edmonton.
“It’s too much … it’s already $400 right now,” she said. “The economy is going down right now … I don’t know why they’re still raising [fees.]”
