Virginia Leaders Reach Agreement on Retail Cannabis Sales
In a major breakthrough, Virginia leaders have agreed to establish a legal retail cannabis market, with sales set to begin on July 1, 2027. The agreement comes after weeks of negotiations between Governor Abigail Spanberger and lawmakers, and is expected to be included in the state’s still-unfinished two-year budget.
The compromise follows the governor’s veto of legislation that would have launched regulated adult-use sales on January 1, due to concerns over enforcement and regulations. The new agreement would allow the Cannabis Control Authority to begin accepting license applications on February 1, with a cap of 350 retail licenses statewide.
Under the proposal, the legal possession limit would increase from one ounce to two ounces, and a 6% state tax would be imposed on cannabis sales, rising to 8% on July 1, 2029. Localities could also impose an additional tax ranging from 1% to 3.5%. The proposal includes restrictions on advertising aimed at children, requirements for child-resistant packaging, and a ban on cannabis products shaped like animals, fruits, vehicles, or people.
Retail stores would be required to remain at least 1,000 feet from schools, hospitals, playgrounds, and drug treatment facilities. The proposal also transfers oversight of intoxicating hemp products from the Virginia Department of Agriculture and Consumer Services to the Cannabis Control Authority.
The agreement aims to create a more competitive market for small businesses and farmers, while also targeting the illicit market with clear enforcement and regulatory authority. According to Governor Spanberger, the proposal would “protect consumers, target the illicit market, and create a more competitive market for small businesses and farmers.”
The cannabis tax revenue would support early childhood education, K-12 education, behavioral health and substance use disorder programs, public health initiatives, and the Cannabis Equity Reinvestment Fund. The proposal is expected to move as part of the state’s broader budget package, with the House and Senate scheduled to reconvene ahead of the June 30 budget deadline.
