Marijuana tax revenue paying for sidewalks, schools in Colorado. Why not here?

The gym rats who join the still-under-construction recreation centre in central Denver, Colo., will owe their workouts to weed smokers.

In Pueblo County, south of Denver, students will soon be able to walk to school on a sidewalk paid for by marijuana tax revenue, or apply to the world's first cannabis-funded scholarship program.

"We're taking dollars that were previously going to drug cartels in Mexico and using them to provide opportunity and education to the next generation," says Pueblo County Commissioner Sal Pace. Elected officials there recently approved the use of $2.5 million U.S. in pot taxes to fund a mix of community projects.

As Canada prepares to legalize marijuana, cash-strapped governments at every level across the country are eyeing the potential tax revenue recreational pot might generate.

In Toronto, where the 2016 budget process is underway, many councillors, fearing voter backlash, are loath to raise or impose new taxes,...

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