Municipal Provincial

Ontario Government Reaffirms Payment to Municipalities for Costs Related to Cannabis Legalization

By Whitney Abrams | January 24, 2019

On January 23, the Ontario Government reaffirmed that it will provide municipalities with a second payment to help defer the costs associated with the legalization of recreational cannabis.

Despite 77 municipalities opting out of the opportunity for retail locations, they will still each receive $5,000 of the earmarked $15 million for the second payment. Those 337 municipalities that opted in will receive at least $5,000 each with the funding determined on a per-household basis. The payment will be provided by the end of February.

The province committed to $40 million over two years to help combat the illegal market through the Ontario Cannabis Legalization Implementation Fund. The first payment of $15 million was distributed in early January. The province has also promised that it will provide municipalities who have opted in to retail cannabis a 50% share of the surplus of the Ontario government’s portion of the federal excise duty on recreational cannabis, if that amount is more than $100 million in the first two years of legalization.

Retail locations across the province should be open on April 1, 2019.

To read the government of Ontario’s press release, visit: https://news.ontario.ca/mof/en/2019/01/ontario-helping-with-recreational-cannabis-costs.html


Whitney Abrams

Whitney Abrams

Whitney’s work focuses on providing regulatory advice and advocating on behalf of cannabis businesses in the North American market. She is a frequent contributor to Canada Cannabis Legal.
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