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Cities won't get direct funding from federal pot tax: Morneau

Cities won't get direct funding from federal pot tax: Morneau
From CBC - December 7, 2017

The federal government wo not be sending municipalities an equal share of revenue from its cannabis tax.

But Finance Minister Bill Morneau said Thursday he is not finished talking with his provincial counterparts about how that revenue will split.

The Federation of Canadian Municipalities has asked the federal government to give cities a third of the revenue generated by the Liberals' proposed excise tax, but Morneau said that is not going to happen.

"We do not see that as our role," he told the CBC's David Cochrane on CBC Radio's The House.

"The discussion around the split between provinces and municipalities is probably best a discussion between provinces and municipalities."

The Liberals had proposed giving provincial and territorial governments half of the estimated $1 billion annual excise tax take once marijuana becomes legal next July.

That proposal will be on the table early next week when the provincial and territorial finance ministers fly into Ottawa for meetings with Morneauon Sunday and Monday.

Ahead of the meetings, reports have emerged that the federal government is willing to give provinces and territories more than a 50-50 revenue split in order to help municipalities cope.

"There's going to be a negotiation," Morneau said.

Provinces say they need more

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