Premier Kathleen Wynne says now that a cost-sharing deal has been struck with Ottawa for cannabis tax proceeds, Ontario can work on passing on some of that money to municipalities.
But finance minister Charles Sousa says they have not yet worked out a formula.
"We're having consultations with the municipalities now," Sousa told reporters Tuesday.
Ottawa agreed yesterday to give provinces a 75 per cent share of federal tax revenues from the sale of legalized pot.
Ottawa will retain the remaining 25 per cent share to a maximum of $100 million a year, with any balance over and above that limit going to the provinces and territories.
Municipalities have said they will shoulder most of the costs of marijuana legalization and want funding to off-set that expense.
"I haven't speculated on the degree of that support," Sousa says of the share of the revenue cities might get. "Not all municipalities are treated the same."
Ontario passed a bill today which establishes a framework for legalization in the province.
With files from Justine Lewkowicz