A Toronto city councillor is seeking accountability from Ontario regarding pledged cannabis tax revenues not yet shared with the city. James Pasternak, representing Ward 6 York Centre and Chair of the North York Community Council, has raised inquiries about the promised distribution of surplus tax revenue generated from federal excise tax on cannabis sales, exceeding $100 million.
Although Toronto received nearly $9 million from the initial $40 million allocation, details regarding the pledged excise tax revenue sharing remain undisclosed by the Ontario government. Of the funds received, $8 million has been utilized for enforcement against illicit cannabis businesses and enforcing related laws, leaving the remainder for future use, as stated by the Toronto City manager.
Despite substantial revenue reported—$310 million during 2022/2023 and an estimated $269 million for 2023-2024—the specifics of fund allocation for purposes like addiction treatment or mental health support are undisclosed.
The Toronto City Council has formally requested clarification from the Ontario Board of Health on the utilization of cannabis funds, including any provisions for addiction treatment or mental health. The Board of Health will deliberate on this matter on November 27, presenting its findings to the Toronto City Council on December 13, 2023.
Similar concerns have been raised by municipalities in other provinces, emphasizing the need for a fair revenue-sharing model respecting municipal authority, as advocated by the Federation of Canadian Municipalities.
source: https://stratcann.com/news/toronto-city-councillor-asking-ontario-where-additional-promised-cannabis-tax-revenue-went/
