Photo: The Canadian Press

Nova Scotia Premier Stephen McNeil is suggesting the provinces and territories have reached an agreement on sharing the tax proceeds from the sale of legalized marijuana.

Speaking following a meeting of Atlantic premiers in Halifax, McNeil is indicating the provincial finance ministers have reached a two-year agreement with Ottawa that includes some flexibility outside the federal government's original proposal.

He says provinces will have the ability to include a markup above and beyond the existing taxation level, although he did not divulge other details.

The finance ministers and their federal counterpart, Bill Morneau, are expected to announce momentarily an agreement that will give the provinces and territories between 70 per cent and 80 per cent of the revenue pool, with Ottawa holding on to the balance.

On his way to the meeting earlier today, Ontario Finance Minister Charles Sousa said the federal Liberal government had made the case that it, too, would have costs and needed a share of the revenue. Ottawa also showed flexibility on revenue and cost-sharing issues, he added.

The original model put forward by the federal government proposed an even 50-50 split, something the provinces insisted would not fly.

"If there is a markup that a respective province wants to do it would be outside of that taxation model, so that was the flexibility that we as a province were looking for and I would say indeed it was what we were hearing across the country," McNeil said.

"The two year window will give each of us the time to go back to the table and say this is actually what policing is costing and this is what the education component is."

The Federation of Canadian Municipalities also wants a third of the revenues earmarked to help municipal governments handle administrative and policing costs.

Federal Finance Minister Bill Morneau said Monday he thinks a reasonable compromise can be reached on how to share a source of tax revenue that Ottawa has estimated could eventually climb to $1 billion per year.

"From a number of provinces, I had a clear sense that they were onboard and ready to move forward," Morneau said on his way to the meeting.

"Like any negotiations, there's going to be back and forth. I think we're making progress."

During the meetings, the ministers will also discuss the federal government's proposed tweaks to the formula behind equalization payments, as well as the three-year review of the Canada Pension Plan. They will also explore the state of the global economy and listen to a presentation by Bank of Canada governor Stephen Poloz.

Talks are also expected to resume on a national strategy to improve the sharing of information on corporate ownership between jurisdictions, a measure designed to clamp down on tax avoidance, tax evasion, money laundering and terrorist financing.