Virginia Officials Reach Compromise to Launch Legal Cannabis Sales Next July

Virginia Gov. Abigail Spanberger (D) reached a compromise with state lawmakers to add provisions legalizing the commercial cultivation and sales of adult-use cannabis to the state budget, WTOP reports.

Under the agreement, adult-use sales will begin on July 1, 2027. The industry will be taxed at 6% initially, increasing to 8% in 2029, and local governments will be able to set an additional cannabis tax of 1% to 3.5%.

The governor last month vetoed a cannabis sales proposal sent to her desk by lawmakers despite a campaign promise to support establishing legal sales. Spanberger had originally requested changes to the proposal, but lawmakers instead sent their original proposal back for reconsideration, which she rejected.

“In the end, we all wanted to deliver a marketplace that the Commonwealth could implement effectively for the long term. We have always had this same end goal, an end goal that has been years in the making.” — Spanberger, at a news conference

The vetoed legislation would have launched the adult-use market on January 1, 2027, but lawmakers settled for the governor’s delayed start date. The agreement includes a total of 350 cannabis business licenses, although the governor’s proposal had reduced the number of licenses to 200.

The sales agreement also creates a new $250 fine for public cannabis consumption, although the governor had proposed making the offense a Class 4 misdemeanor, the report said.