The federal government of Canada has stated many times that its number one priority with cannabis legalization is to stamp out the black market. Concurrently, the feds are also creating one of the most robust revenue streams this country has ever seen.
In theory, both ideas are sound. In practice, it’s a delicate balance between keeping legal pot prices low while taxing the commodity enough to cover the costs of added infrastructure.
Case in point is an open letter that Toronto Mayor John Tory sent to Ontario Premier Kathleen Wynne last month which stated, among other items, that Mayor Tory may want to see an added municipal tax on adult-use pot when it is legalized.
“[Tory’s] concerns in this open letter were that there will be increased costs for the City of Toronto,” said lawyer Matt Maurer in an interview with Marijuana.com. Maurer is the Chair of the cannabis law division of Minden Gross LLP. “We are hearing across the country at the municipal level that they are concerned about enforcement and regulation and all the costs that go along with it.”
Maurer added that Mayor Tory stated increased taxes have been implemented in some U.S. cities to offset…