Sunday , June 20 2021

As legal cannabis rises, city authorities call for more revenue

Edible cannabis will be legal in Canada until October 17, 2019.

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With lucrative legal cannabis on the horizon, Calgary officials have renewed their calls for a larger share of revenue pie.

A report to be discussed in the city intergovernmental committee on Thursday suggests that the city use a public consultation period on food regulation to make more money from Ottawa and the province to cover an estimated $ 6.6 million shortfall in dealing with local problems with cannabis.

While the province has given the city $ 3.84 million to help cover law enforcement and regulatory spending by 2019, city authorities say they expect these costs to reach $ 10.44 million by the end of this year.

"We select the provincial government section at a time when we are facing an economic downturn," Councilor Councilor said. George Chahal.

He said spending ranging from forcing enforcement to sub-legislative and health regulations is being withdrawn from other governments in a city that has no arm for legalizing marijuana.

The city, Chagall said, should at least be reimbursed for these costs.

"As a minimum, it will be enough to cover these estimated costs, we will always like more," he said.

Cannabis industry players say food legalization and other statements scheduled for October 17 will drastically expand the cannabis market and lead to higher government revenues.

Ottawa agreed to share 75 percent of cannabis excise revenues with the provinces, while Alberta has imposed a 10 percent charge with a similar amount of cannabis sales.


The city says that it only spent October 3, 2018, $ 3.7 million, for the cannabis file – $ 1.8 million from the police salary, and another $ 1 million – for court costs, public standards, and communication costs.

Chagall noted that Calgary has the largest number of fully licensed cannabis channels between cities in the country – 24, which means that the cost of overseeing them is greater, even though they generate funds for the city treasury.

"Perhaps the speed of our policies for approval, but also shows the entrepreneurial spirit in our city," he said.

These local tax revenues and cost burdens could be increased by legal teeth if it means the appearance of cannabis cafes, Chahal added.

The public health public health channel in Canada, which focuses mainly on packing and content rules, ends on February 20th.

Although he is aware of the concerns of the cities, the government of the NDP has no immediate plans to sweeten the pot for marijuana revenues for municipalities, Finance Minister Joe Sesi said.

"This funding is for two years and will give us time to understand the cost of enforcement," Ceci said in a statement quoting a $ 11.5 million support package in the province.

"Our discussion with the municipalities (e) continues and we will determine the next steps with them when the situation develops."

The latest forecast for cannabis revenues in the province is $ 31 million from October 17 to March 31, though the government said it did not expect earnings for the "first few years of legalization".

While Oct. 17 was cited as the date for legalization of derivatives, then the Ottawa king Blair Blair suggested a possible delay to ensure that it was properly applied.

Following the introduction of a legitimate flower and marijuana oil last October 17, industry has been struggling with supply shortages, logistical challenges and a small number of legal violations.

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on Twitter: @BillKaufmannjrn

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