THE CANADIAN PRESS/Sean Kilpatrick
TORONTO — Municipalities can begin discussions with Ontario over
costs associated with legalized marijuana in light of a new tax-sharing
agreement between the provinces and federal government, Premier Kathleen
Wynne said on Tuesday.
Wynne’s comments come after the federal government agreed to give provinces and territories a 75 per cent share of federal excise tax revenues from the sale of legalized pot. The remaining 25 per cent — to a maximum of $100 million a year — will stay with the federal government. Federal revenues above $100 million will also go to the provinces and territories.
“We need to work with municipalities to understand what their costs are going to be, what our costs are going to be, and now we will do that work within this context of this sharing framework,” Wynne said.
Municipalities have said they will shoulder most of the costs of marijuana legalization and want funding to offset the expense.
The premier said she was happy with the federal-provincial cost-sharing arrangement that will benefit local governments.
“The federal government came in with the position of a 50-50 split and we said that is not acceptable,” Wynne said. “The provinces and municipalities will have many more costs than the federal government.”
The federal government introduced legislation in April with a goal of legalizing and regulating the use of recreational pot by July 1, but left it up to the provinces to design their own distribution systems and usage regulations.
Ontario was the first province to announce a detailed plan to sell and distribute recreational marijuana and legislators on Tuesday passed a bill that would establish a framework for legalization.
The minimum legal age to purchase cannabis will be 19. The province also plans to set up about 150 standalone cannabis stores by 2020. The first wave of 40 stores will open in 2018, with that number slated to rise to 80 stores by July 2019.
Consumption of legal weed will not be allowed in public spaces or workplaces in Ontario and will have to be confined to private residences, the province has said.
Meanwhile, a group of doctors is calling on the federal government to withdraw its plan to charge tax on medicinal marijuana or risk having an adverse effect on patients.
The 50 doctors, who describe themselves as physicians who routinely prescribe marijuana to their patients, say applying a sales or excise tax to medicinal pot would impose a financial barrier for those who use the drug to manage their symptoms, compared to patients who take other medication.
“The new taxes being proposed on medical cannabis (are) discriminatory towards patients,” Dr. Michael Verbora said in a statement. “All medications prescribed have zero tax. At a time when we are suffering from an opiate crisis the last thing we should do is introduce financial barriers to patients accessing a safer alternative.”
Last month, Bill Blair, parliamentary secretary to the ministers of justice and health, said the federal government’s task force report recommended the tax regime on medical and recreational marijuana be the same.
“Our government remains committed to maintaining a functional medical marijuana system,” Blair said at the time.
“At the same time, we do not want the taxation levels to be an incentive for people to utilize that system inappropriately and so we propose that the taxation levels for both non-medical and medical will be aligned.”
Wynne’s comments come after the federal government agreed to give provinces and territories a 75 per cent share of federal excise tax revenues from the sale of legalized pot. The remaining 25 per cent — to a maximum of $100 million a year — will stay with the federal government. Federal revenues above $100 million will also go to the provinces and territories.
“We need to work with municipalities to understand what their costs are going to be, what our costs are going to be, and now we will do that work within this context of this sharing framework,” Wynne said.
Municipalities have said they will shoulder most of the costs of marijuana legalization and want funding to offset the expense.
The premier said she was happy with the federal-provincial cost-sharing arrangement that will benefit local governments.
“The federal government came in with the position of a 50-50 split and we said that is not acceptable,” Wynne said. “The provinces and municipalities will have many more costs than the federal government.”
The federal government introduced legislation in April with a goal of legalizing and regulating the use of recreational pot by July 1, but left it up to the provinces to design their own distribution systems and usage regulations.
Ontario was the first province to announce a detailed plan to sell and distribute recreational marijuana and legislators on Tuesday passed a bill that would establish a framework for legalization.
The minimum legal age to purchase cannabis will be 19. The province also plans to set up about 150 standalone cannabis stores by 2020. The first wave of 40 stores will open in 2018, with that number slated to rise to 80 stores by July 2019.
Consumption of legal weed will not be allowed in public spaces or workplaces in Ontario and will have to be confined to private residences, the province has said.
Meanwhile, a group of doctors is calling on the federal government to withdraw its plan to charge tax on medicinal marijuana or risk having an adverse effect on patients.
The 50 doctors, who describe themselves as physicians who routinely prescribe marijuana to their patients, say applying a sales or excise tax to medicinal pot would impose a financial barrier for those who use the drug to manage their symptoms, compared to patients who take other medication.
“The new taxes being proposed on medical cannabis (are) discriminatory towards patients,” Dr. Michael Verbora said in a statement. “All medications prescribed have zero tax. At a time when we are suffering from an opiate crisis the last thing we should do is introduce financial barriers to patients accessing a safer alternative.”
Last month, Bill Blair, parliamentary secretary to the ministers of justice and health, said the federal government’s task force report recommended the tax regime on medical and recreational marijuana be the same.
“Our government remains committed to maintaining a functional medical marijuana system,” Blair said at the time.
“At the same time, we do not want the taxation levels to be an incentive for people to utilize that system inappropriately and so we propose that the taxation levels for both non-medical and medical will be aligned.”
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