Municipalities stake claim to pot revenue

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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.”

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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

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  1. Right. And the move to get a $20 gram of MJ to market continues. Look for these geniuses to add excise on distribution next, a “handling” tax for the retail clerk at the OCRC to ring through your order, maybe a “conveyance tax” for the paper bag they put it in. Outside the store, the cop will have to tax you to look into your “3- grams or less” purchase decision, another quick “survey tax” to check your ID and receipt, and, finally, when you get home, a “safe-T tax/axe tax” to oversee your joint firmness and , of course, to measure the 100 cm (or less!) plant growing in your basement. I’ve said it before but it bears repeating: liberty was sweet, but now its fleeting. Enjoy your “legal” weed, Canada!