Municipal Provincial

Ontario Government Reaffirms Payment to Municipalities for Costs Related to Cannabis Legalization

By Whitney Abrams | January 24, 2019

On January 23, the Ontario Government reaffirmed that it will provide municipalities with a second payment to help defer the costs associated with the legalization of recreational cannabis.

Despite 77 municipalities opting out of the opportunity for retail locations, they will still each receive $5,000 of the earmarked $15 million for the second payment. Those 337 municipalities that opted in will receive at least $5,000 each with the funding determined on a per-household basis. The payment will be provided by the end of February.

The province committed to $40 million over two years to help combat the illegal market through the Ontario Cannabis Legalization Implementation Fund. The first payment of $15 million was distributed in early January. The province has also promised that it will provide municipalities who have opted in to retail cannabis a 50% share of the surplus of the Ontario government’s portion of the federal excise duty on recreational cannabis, if that amount is more than $100 million in the first two years of legalization.

Retail locations across the province should be open on April 1, 2019.

To read the government of Ontario’s press release, visit: https://news.ontario.ca/mof/en/2019/01/ontario-helping-with-recreational-cannabis-costs.html


Whitney Abrams

Whitney Abrams

Whitney’s work focuses on providing regulatory advice and advocating on behalf of cannabis businesses in the North American market. She is a frequent contributor to Canada Cannabis Legal.
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Comments (3)

  1. Jules:
    Dec 29, 2018 at 12:53 AM

    Fascinating article. Very in depth. My one question is: from where would Canada import cannabis? Are there countries currently exporting cannabis legally? Uraguay seems like the most economical source, although shipping costs could be an issue.

  2. miss lena:
    Feb 24, 2019 at 01:52 PM


    All labels will need to be plain, not appealing to children, and make no health claims. For edibles, there may be no dietary claims, and for topicals, there may be no cosmetic claims. For all of the new product classes, packaging and labelling must not contain any elements that associate the product with an alcoholic beverage, alcohol, or an alcohol brand.

  3. miss lena:
    Feb 24, 2019 at 01:52 PM

    All labels will need to be plain, not appealing to children, and make no health claims. For edibles, there may be no dietary claims, and for topicals, there may be no cosmetic claims. For all of the new product classes, packaging and labelling must not contain any elements that associate the product with an alcoholic beverage, alcohol, or an alcohol brand.






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