The Saskatchewan Urban Municipalities Association (SUMA) continues to call on the provincial government to share a portion of cannabis excise tax revenues as Saskatchewan moves to an open-market system for cannabis retail permits.
“Saskatchewan’s hometowns are on the front lines of cannabis legalization, responsible for developing and enforcing rules around cannabis production, sales, and consumption,” said SUMA President Gordon Barnhart. “An open-market retail system places further responsibility on Saskatchewan’s hometowns, responsibility that the provincial government has failed to recognize with a share of cannabis excise tax revenues.”
The province is receiving 75 per cent of cannabis excise tax revenues, instead of 50 per cent as originally anticipated. The 2018 federal budget recognized that additional tax revenues provided to provinces and territories was to be transferred to municipalities and local communities. That intention was reiterated in a letter to SUMA from Finance Minister Bill Morneau, in which he acknowledged that the federal government was willing to accept a smaller share of cannabis tax revenues to ensure that provinces and territories would have additional funds to provide to municipalities and local communities to address cannabis-related responsibilities.
“Saskatchewan’s hometowns value a respectful, government-to-government relationship between provincial and local governments,” said President Barnhart. “Providing a share of cannabis excise tax revenues honours that relationship and acknowledges the responsibilities hometowns have in legalization.”
