The Calgary Herald reports..

Commercial cannabis producers in Alberta will have to start paying property taxes, a move being welcomed by Alberta municipalities.

The provincial government announced the change Wednesday at the Rural Municipalities of Alberta convention in Edmonton. Municipal Affairs Minister Kaycee Madu said as of the 2020 tax year, cannabis producers will no longer be classified as agricultural businesses and so won’t qualify for a tax exemption.

“This change responds directly to the concerns of municipalities, who asked for this distinction in provincial tax regulations. 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 a news release.

Prior to the legalization of cannabis, commercial cannabis businesses did not exist. Since legalization on Oct. 17, 2018, cannabis-growing facilities have been treated as farm buildings and received a tax exemption as agricultural operations. However, municipalities with large cannabis production facilities within their boundaries have been lobbying for a change to the tax law.