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Towns unsure they'll get much pot revenue

The mayors of Olds and Bowden are skeptical they'll get much money out of a deal between the feds and provinces to split tax revenue from recreational marijuana sales.
Olds and Bowden mayors are unsure they’ll get much revenue from the upcoming legalization of recreational marijuana.
Olds and Bowden mayors are unsure they’ll get much revenue from the upcoming legalization of recreational marijuana.

The mayors of Olds and Bowden are skeptical they'll get much money out of a deal between the feds and provinces to split tax revenue from recreational marijuana sales.

They're also unsure how much of that money they'll get ñ and even what their municipalities' responsibilities will be in this area.

The federal government says it wants to make consumption of recreational marijuana legal by July 1 next year.

Last week, Finance Minister Bill Morneau and provincial ministers agreed that provinces will receive 75 per cent of tax revenue and the feds the remaining 25 per cent.

That's more than the 50-50 share the federal government had initially offered, but less than the 100 per cent that some provinces had demanded.

Provincial governments had argued they needed that extra money because they say most of the costs of preparing for legalized marijuana ñ including policing ñ fall on their shoulders.

Olds mayor Mike Muzychka is aware of the deal between the provinces and the feds, but says so far, that's about as much as he and town staff know about the situation.

Asked if the town is preparing for the legalization of marijuana, Muzychka said, "we have started the discussions. Unfortunately, without a solid, solid framework on how the retail outlets will go from the province, we're not really sure what we're up against," he says.

"So it's great to have these dollars earmarked for us, but we're not sure which way to spend them yet because we don't know what all the rules are.

"There are so many questions yet to be answered by the federal and provincial government that we're sitting here discussing it, but we're sort of going in circles until we get the finalized mandates from those governments," he added.

Muzychka said questions yet to be answered include whether the town will need more policing, and if so, whether it will obtain that extra help.

He predicts zoning will be another issue as the town and provincial government try to keep stores selling marijuana away from places like schools.

Muzychka says the town has been pressing for answers from the provincial government through the Alberta Urban Municipalities Association.

He's still waiting.

"We're sort of twisting in the wind right at the moment," Muzychka says. "There's not a lot of time to get things in place. But hopefully we have something concrete here in the next month or so out of the two governments and then we can start building our plan."

Bowden mayor Robb Stuart also doesn't have answers to those same questions.

However, Stuart is unsure his town will see much change as a result of legalization.

For example, he's doubtful lots of stores will pop up to sell recreational marijuana because he's not sure the demand will be there.

"There's a lot of people in Bowden who use marijuana or whatever and I think that's the case everywhere now, but I don't think they'll change their supplier," he says.

"They might try the novelty of it, but they'll buy it from wherever they're getting it now. It'll be more visible because they'll be walking around with it, I think; I'm not sure.

"But I don't see how we'd get much revenue out of it even if there was a store in town."

"We're sort of twisting in the wind right at the moment."MIKE MUZYCHKAMAYORTOWN OF OLDS

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