A cross-country squabble over how best to divvy up the proceeds of Canada's coming legal-marijuana windfall is about to intensify as finance ministers gather for high-stakes talks in Ottawa.
For the provinces and territories, a key question looms: what entitles Ottawa to claim so much as half of the tax revenues that will start flowing when marijuana is legalized next summer?
UPDATE: Canadian Government Reaches Deal With Provinces on Cannabis Tax
The provincial and territorial governments insist they should get the lion's share of the funds because they'll shoulder most—if not all—of the costs associated with legalization.
But federal Finance Minister Bill Morneau will counter with an argument during the meetings that Ottawa has already made big financial commitments towards cannabis legalization, said a senior government official.
Morneau will explain that he's already earmarked more than $1 billion toward legalization over the next five years, with a focus on areas such as public safety, policing and awareness, said the official, who spoke on condition of anonymity because they were not authorized to speak publicly.
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