This week Finance Minister Bill Morneau announced that legalized pot will cost Canadians about $10 a gram. Provinces will get to keep 75 per cent of the tax revenues to help cover costs of setting up the new regime, but while provinces are happy, municipalities are now joining the line to claim their share of the revenue pot.
Each gram of marijuana would have a tax of $1 on sales up to $10 and a 10-per-cent tax on sales worth more than $10.
Mississauga is asking for a commitment that municipalities will be given their fair share of the pot tax.
“To date there has not yet been a formal commitment to the amount of revenue that will be shared with municipalities,” reads a statement from Mayor Bonnie Crombie released Monday. “This is concerning as municipalities across Canada work to prepare for the rapidly approaching July 2018 legalization date.”
Mississauga was one of the first 14 cities selected to have legal recreational marijuana shops, along with Brampton, Toronto, Vaughan and Hamilton. The federal government predicts 150 standalone LCBO-run marijuana shops will be in place by 2020.
Mayor Crombie is pushing for a three-way split, with each level of government receiving one-third of the revenue.
Marijuana tax is estimated to bring in over 400 million in revenue. – CINEWS