Wynne says pot cost sharing deal with Ottawa means more money for municipalities
By The Canadian Press
TORONTO – Premier Kathleen Wynne says now that a cost-sharing deal has been struck with Ottawa for the tax proceeds from marijuana sales, Ontario can work on passing on some of that money to municipalities.
Wynne made the comments today after the federal government agreed Monday to give provinces and territories a 75 per cent share of federal excise tax revenues from the sale of legalized pot.
Ottawa will retain the remaining 25 per cent share to a maximum of $100 million a year, with any balance over and above that limit going to the provinces and territories.
Wynne called the agreement positive considering that the federal government entered the discussions with an offer to share only half of the excise tax proceeds.
Municipalities have said they will shoulder most of the costs of marijuana legalization and want funding to offset that expense.
Ontario legislators passed a bill today, which establishes a framework for legalization in the province.
Ottawa is expected to legalize cannabis for recreational use in July.