The government of Ontario has released the details of how it will share revenue from sales of recreational cannabis with municipalities. The deal, announced by Minister of Finance Charles Sousa, will govern the sharing of cannabis for the first two years of implementation. After two years the province will meet again with the Association of Municipalities of Ontario (AMO) and the City of Toronto to review and possibly renegotiate the deal. According to the deal:

• The province will provide $40 million dollars to the municipal sector in Ontario. All municipalities will share some portion of the overall envelope. Funding will be allocated on a per household basis, adjusted to ensure every municipality in the province receives a minimum of $10,000. In counties and regions, funding will be shared equally between the upper and lower tiers, unless an alternate arrangement is made by the local municipalities. 

• If the province's portion of revenue from the federal government's excise duty for the first two years of legalization exceed $100 million, municipalities in Ontario will receive 50% of the surplus revenue. 

• Half of the $40 million will flow to municipalities "as soon as possible" following federal Royal Assent and before recreational cannabis is legally available. This will ensure that municipalities have access to upfront funding to help mitigate the early costs of implementation. 

You can find more information about the deal in this Q&A produced by AMO. 

For more: 

Federal Government, Provinces Reach Revenue Sharing Deal on Cannabis

AMO Calls for Share of Cannabis Revenue