Mayor Tory wants Toronto to get a share of pot revenues
Municipalities will need help because they will be forced to pick up the costs of policing and enforcement, he says.

thestar.com
By BETSY POWELL
July 18, 2017

Mayor John Tory is asking the province for a dedicated share of pot revenues - possibly through a special levy - after recreational marijuana becomes legal in Canada next July 1.

While the province plans to regulate the sale of pot in an as yet-to-be determined retail distribution model, it will “be on the shoulders of municipalities,” to pick up “a big part” of the added licensing, zoning by-law enforcement and policing costs, Tory wrote in a letter to Ontario Premier Kathleen Wynne.

“Whatever decisions are made, I have no doubt the result will be increased costs for the city of Toronto,” Tory wrote in his letter.

“As a consequence, we would want to discuss with you what the magnitude of those costs might be and reach agreement with you on both increased public health funding and a dedicated share of increased provincial revenues attributable to the sale of marijuana.”

Tory suggested city and provincial officials, who are already in discussions on the issue, explore the possibility of a special levy on pot similar to what some U.S. cities have imposed to offset increased costs.

The mayor’s letter says it is essential that municipalities be included in discussions on the rules and regulation of retailing, marijuana smoking and sales and public education.

The federal government will license and regulate marijuana growers while the provinces will decide how pot should be distributed and sold. Buyers will have to be at least 18, though provinces can set a higher minimum.

The Ontario government is holding consultations before deciding how to proceed. But the premier has indicated the possibility of selling pot in government-run stores, similar to the way booze is sold through the LCBO.

The province is working hard to meet Ottawa’s deadline for legalization and a key part of that is ensuring all stakeholders, including municipalities, have a chance to provide input and feedback, a Ministry of the Attorney General spokesman wrote in email Tuesday.

“The feedback from municipalities like City of Toronto, including on taxation, will play an important role in developing an approach for cannabis legalization that helps protect public health and road safety, and prevents harm, particularly among young people.”