Article by Dave Dormer, CBC News
Should cannabis tax revenues flow from the federal to provincial to municipal governments as expected, Calgary Mayor Naheed Nenshi says the city will be able to cover the cost of enforcement once recreational marijuana is legalized later this year.
“It was important to note we did hear from the minister of finance that the intent of the tax split on cannabis is really that those revenues are supposed to flow to municipalities and local communities,” Nenshi told reporters Tuesday while responding to the federal budget.
“We just want to highlight that for the province of Alberta, that we are expecting that we will be able to more than cover the costs of enforcement, which largely come to the City of Calgary going forward.”
Budget documents released Tuesday say “It is the federal government’s expectation that a substantial portion of the revenues from this tax room provided to provinces and territories will be transferred to municipalities and local communities, who are on the front lines of legalization.”
The federal government announced in December that 75 per cent of tax revenues from the sale of marijuana will go to the provinces — and in turn flow to cities — and 25 per cent will remain with the feds.
Under the deal, the federal portion of tax revenues will be capped at $100 million a year, which is based on a projected $400 million a year in total tax revenue, with any dollars collected above and beyond that shared by the provinces.
Calgary police Chief Roger Chaffin said the money will help them deal with issues facing those who are disadvantaged.