August 2019
Ontario Releases Municipal Cannabis Funding

2019-08-14 8:17:59 AM


Ontario’s Minister of Finance Rod Phillips yesterday wrote to the Heads of Council of all eligible Ontario municipalities notifying them that the Ministry will soon be releasing $6.74 million through the Ontario Cannabis Legalization Implementation Fund (OCLIF).

According to AMO (Association of Municipalities Ontario), this allocation deals with the remainder of the $10 million holdback, which is meant to be used to address unforeseen costs relating to cannabis legalization. Priority will be given to municipalities that did not opt-out of allowing private cannabis retail stores. In his letter, Minister Phillips also said that additional information on future allocations will soon be provided.

Following the initial distribution of OCIP funds, municipalities can now focus on provincial revenue from the federal excise tax for cannabis. The current model states that if revenues exceed $100 million over the first two years of legalization, the provincial government would provide 50% of the surplus funds to municipalities that did not opt-out.

Over the past couple years, AMCTO has assisted municipalities to ensure they are best prepared to tackle cannabis implementation whereby the association has hosted forums discussing related relevant topics, such as by-law and enforcement. For example, a forum hosted in November 2018 specifically featuring best practices of the legalization of recreational cannabis. We would encourage the provincial government to consider the interests of municipalities to ensure that cannabis revenue is used to cover implementation costs that local governments will have to bear. 

For more information, please see below:

AMO: Ontario Releases Remainder of Municipal Cannabis Funding 

Ministry of Finance: Ontario Cannabis Legalization Implementation Fund (OCLIF)


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