PEI

P.E.I. municipalities want share of tax revenue from cannabis sales

The Federation of Canadian Municipalities, including P.E.I., is looking for Island communities to get a share of the tax revenue from cannabis sales.

'We just want to work with the new government to make sure municipalities are looked after'

The Federation of P.E.I. Municipalities says Quebec and Ontario are the only provinces with revenue-sharing arrangements in place. (Jim Mone/Canadian Press/AP)

The Federation of P.E.I. Municipalities, along with the national association, is calling for municipalities to get a share of the tax revenue from cannabis sales.

Right now, Quebec and Ontario are the only provinces with revenue-sharing arrangements in place, according to a news release from the Federation of P.E.I. Municipalities.

"The federal and provincial governments have all kinds of avenues to gain revenue. Municipalities only have one and that's through taxation," said Bruce MacDougall, president of the Federation of P.E.I. Municipalities.

"So with this cannabis taxation and those types of things, it allows us to basically have another source of revenue instead of the taxation on property taxes."

Municipalities across the country are expected to get a portion of the tax revenue from cannabis, MacDougall said, and the federation has been looking at the issue for the past year.

'Work with the new government'

So far, many municipalities haven't seen any money, MacDougall said.

'So with this cannabis taxation and those types of things it allows us to basically have another source of revenue instead of the taxation on property taxes,' says Bruce MacDougall, president of the P.E.I. Federation of Municipalities. (CBC)

Now the Island's federation is renewing its call to have that process sped up, MacDougall said, and has asked the province's finance minister to address the issue, he said.

"We just want to work with the new government to make sure municipalities are looked after and have a fair share of taxation so they can provide for people to work and play," MacDougall said. 

In an email statement to CBC, a P.E.I. Finance Department spokesperson said the province requested a summary of detailed costs of cannabis legalization for municipalities for further discussion, and officials are "still awaiting this information."

More P.E.I. news

With files from CBC Radio: Island Morning

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