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The province believes it's premature to talk about sharing revenue made from marijuana legalization with municipalities, considering it doesn't know whether there will be any net revenue at all.

Municipal Relations Minister Jeff Wharton says in a statement the provincial government has asked municipalities to track their costs and revenues from business taxes and fees on cannabis retailers, after recreational consumption is legalized. Wharton says the province will use that information going forward, and will work closely with municipalities following legalization.

"There are many one-time and ongoing provincial costs related to the implementation of legalized cannabis, including various regulatory, healthcare and addictions, education and public safety costs. All provinces agree that the provincial level of government will bear the majority of the costs related to legalization," says Wharton in the e-mailed statement.

A report read at a City of Winnipeg executive policy committee meeting this morning estimated legalizing marijuana will cost the city $1.76-million per year. The administrative report is based on data from the Federation of Canadian Municipalities.

Most of the expected cost to the city will be in policing, but the report also says there will be increased costs to fire and paramedic services, planning and property development, community services, and in training and insurance.

The city report suggests some revenue could be made through licensing fees, and it identified up to $84,000 in potential revenue through differential business tax rates.