The City of Winnipeg estimates pot legalization will cost taxpayers $1.76 million dollars.

A new report says the majority of the costs are related to policing at around $1.2 million.

To date the province has not said if it will share cannabis related revenue with municipalities.

The report says if the province does not pass down marijuana revenue, the city could explore a couple options.

It says a business licence fee and increased business tax rates for pot retailers could be established.

Municipal Relations Minister Jeff Wharton says the province isn't expecting a profit from pot.

"As we have said from the outset, revenues during the first year of legalization will fall short of the expected costs to the province. It would be premature to discuss revenue sharing when it is not yet apparent whether there will be any net provincial revenue," said Wharton.