November 20, 2018 6:24 pm
Updated: November 21, 2018 4:35 pm

Ontario distributing millions in January to help legal pot costs in municipalities

Ontario finance minister Vic Fedeli announced $15 million will be split to the province's municipalities to help cover cannabis costs in January.

Global News

TORONTO – The Ontario government will start distributing millions in funding in January to help municipalities cover costs associated with legalizing recreational cannabis.

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In a letter to the Association of Municipalities of Ontario, Finance Minister Vic Fedeli says $15 million will first be spilt among the province’s municipalities at the start of the new year, with funding allocated on a per household basis and all communities receiving at least $5,000.

READ MORE: Ontario government says recreational cannabis can be smoked wherever tobacco smoking allowed

An additional $15 million will then go to municipalities that agree to host cannabis retail stores within their boundaries.

The Progressive Conservative government has given communities until Jan. 22 to decide whether they want to opt out of hosting the stores, which are expected to start operating in April.

Fedeli says the province will set aside an additional $10 million as a contingency fund to deal with any “unforeseen circumstances” related to marijuana legalization that municipalities might encounter.

READ MORE: Marijuana to be sold through private retailers, online in Ontario

He says the funds for municipalities can only be used for a prescribed set of circumstances including heightened enforcement, increased response to public inquiries, increased paramedic or fire services and by-law or policy development.

“Our government is committed to respecting taxpayers and their hard-earned money,” Fedeli said in the letter, a copy of which was obtained by The Canadian Press. “We believe municipalities have an obligation to do likewise.”

READ MORE: Ontario government says pot deliveries will continue in case of Canada Post strike

Fedeli also said that if Ontario’s portion of the federal excise tax on recreational marijuana exceeds $100 million, the province will give half of the surplus to municipalities that have not opted out of hosting stores.

The federal government legalized recreational cannabis on Oct. 17. In Ontario, a government-run online store is currently the only way to purchase recreational pot.

© 2018 The Canadian Press

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