Pubdate: Fri, 08 Dec 2017 Source: Calgary Herald (CN AB) Copyright: 2017 Postmedia Network Contact: http://www.calgaryherald.com/ Details: http://www.mapinc.org/media/66 Author: Annalise Klingbeil Page: A1 LEGAL POT WILL COST CITY $10M PER YEAR Nenshi wants share of federal tax revenues The legalization of recreational marijuana will cost the city of Calgary more than $10 million annually in policing, bylaw and administration costs - a tab the mayor wants the federal government to ease by giving municipalities a one-third share of tax revenues from pot sales. Council's Intergovernmental Affairs Committee heard Thursday that administration's latest estimates peg the price of cannabis legalization on city coffers at between $9 million and $12 million every year - the equivalent of about a one per cent increase in property taxes annually. "This is a very big deal," Mayor Naheed Nenshi told reporters after the committee meeting. "We've not padded this number, we've really gone through and found where the costs are going to be. Some of them are in policing, some of them are in city operations like building inspections, zoning and so on." The Trudeau government is legalizing recreational cannabis in July and has pitched giving provincial governments half of its estimated $1-billion annual cannabis excise tax take once weed becomes legal. But given the financial burden the new rules will put on municipalities, Calgary's mayor is adamant the city needs a share of the federal government's tax revenues. "We're looking north of $10 million a year, so it's incredibly important that any revenue that is gained from cannabis sales, the excise tax on cannabis sales, be shared directly with the municipalities," the mayor said. The Federation of Canadian Municipalities has pitched a revenue-sharing model that would allocate one-third of cannabis excise tax revenues to municipalities, with the remaining two-thirds split between the federal and provincial governments - a model Nenshi supports. "That makes a lot of sense. That's what we're pushing for," Nenshi said. Federation of Canadian Municipalities President Jenny Gerbasi said in a statement released Wednesday that local governments are on the front lines of implementing the federal legislation and the one-third split is "fair and achievable." "A smart revenue model will recognize that three orders of government are in this together," Gerbasi said in the statement. The mayor said in recent days the feds have shown they're willing to be flexible on the revenuesharing model and he's hopeful a solution will be reached. "Ideally, it would be a situation where some of that federal tax money flows directly to the municipality and doesn't have to stop off at the province on the way," he said. The council committee also heard Thursday the city has so far received 11,800 responses to its online survey seeking input from Calgary residents on various issues related to the looming legalization. While the city is waiting on the province for more details surrounding areas of legalization such as the licensing and zoning of marijuana stores, the city expects stores to open in less than seven months. "We're doing our best to ensure businesses would have the ability to open their doors come July," Matt Zabloski, the lead for the City of Calgary's cannabis legalization project, told the council committee. - --- MAP posted-by: Matt