Saskatchewan to Share Marijuana Tax Revenue With First Nations Operating Licensed On-Reserve Stores
- The On-Reserve Cannabis Refund Program in Saskatchewan will share a portion of provincial tax revenues from provincially licensed on-reserve marijuana stores with First Nations, returning half of the province’s share of federal marijuana excise duty from qualifying sales.
- Payments will be based on each store's sales relative to overall provincial sales, overseen by the Ministry of Finance, with the program expected to cost about $120,000 in the 2026-27 fiscal year and launch around July 1.
- The program supports Indigenous-led economic development, authorized through Bill 50, and builds on the 2022 legal framework allowing First Nations to license and regulate on-reserve cannabis retail and distribution.
- Reactions among First Nations leaders vary, with some participating under provincial systems while others assert self-governance rights and operate marijuana stores outside provincial licensing rules.
Saskatchewan is launching a new program that will allow First Nations with provincially licensed on-reserve marijuana stores to receive a portion of the tax revenue generated by those businesses.
The On-Reserve Cannabis Refund Program, included in the province’s 2026-27 budget, will return half of Saskatchewan’s share of federal marijuana excise duty tied to qualifying on-reserve sales. Saskatchewan receives 75% of federal marijuana excise duty collected on wholesale sales in the province.
Under the program, payments will be based on each participating on-reserve store’s sales compared to overall provincial sales. The Ministry of Finance is authorized to oversee the refunds, with the program expected to cost about $120,000 during the 2026-27 fiscal year.
Provincial officials expect the program to begin July 1, with payments starting shortly after. Saskatchewan currently has two on-reserve retailers operating within the required provincial framework, though officials said they expect more First Nations to take interest once the revenue-sharing system is in place.
The funding was authorized through Bill 50, sponsored by Saskatchewan Deputy Premier and Minister of Finance Jim Reiter. Reiter said the measure supports Indigenous-led economic development and helps ensure First Nations can take part in provincial initiatives.
Saskatchewan has collected $153.6 million as its share of federal marijuana excise taxes from October 2018 through August 2025. The province currently lists 204 licensed marijuana retailers.
Saskatchewan does not operate a centralized marijuana distribution system. Instead, the province approves producers that can sell directly to retailers or through third-party distributors.
The new refund program builds on changes approved in 2022, when Saskatchewan created a legal structure allowing First Nations to license and regulate on-reserve marijuana retail and distribution. Under that framework, a First Nation can establish an Indian band cannabis authority to regulate on-reserve stores, with certain retailers exempt from obtaining a Saskatchewan Liquor and Gaming Authority permit if local rules meet provincial standards.
The issue has drawn mixed reaction from First Nations leaders. Some communities have worked with the province, while others have argued that self-governance is an inherent treaty right and should not depend on provincial authorization.
Several First Nations marijuana retailers also operate in Saskatchewan under their own jurisdiction and regulations, outside the provincial licensing system.