Lawmakers in Virginia have reached a compromise with Gov. Abigail Spanberger to legalize retail cannabis sales starting July 1, 2027. Through the state budget process, the deal completes a years-long process that began in 2020, the governor’s office said Tuesday.
“I’m excited to stand alongside Sen. [Lashrecse] Aird and Delegate [Paul] Krizek to announce that we have agreed to a compromise proposal that will create a safe, legal and well-regulated cannabis marketplace here in Virginia—with recreational sales beginning on July 1, 2027,” said Spanberger. “We will do it in a way that protects consumers, targets the illicit market with clear enforcement and regulatory authority, and creates a more competitive market for small businesses and farmers.”
Key details of the compromise include:
- Establishes a 6% state tax rate on cannabis products at launch, increasing to 8% after July 1, 2029. The bill further allows localities to adopt an additional 1%-3.5% local tax combined with the existing retail sales and use tax.
- Creates a maximum of 350 retail cannabis establishment licenses and increases the possession limit from 1 ounce to 2 ounces. The Cannabis Control Authority (CCA) would begin accepting applications for licenses on Feb. 1, 2027.
- Authorizes the CCA to create escalating penalties for failing to do ID checks, including license revocation for repeated underage sales and requirements that retail stores be no less than 1,000 feet from schools, hospitals, playgrounds and drug treatment facilities.
- Strengthens oversight of industrial intoxicating hemp, which is currently regulated by the Virginia Department of Agriculture and Consumer Services by transferring regulation to the CCA.
The agreement would end the 25:1 hemp loophole—passed and advocated for by the previous administration that allowed highly intoxicating THC products to proliferate in Virginia with limited oversight, according to statement from the governor’s office. The state budget needs to be finalized for the compromise to become a reality, VPM News reported.
“This compromise gives us a smarter and safer path forward—one that protects consumers, keeps products tested and accurately labeled, and creates a legal marketplace that is affordable and accessible enough to actually compete,” Aird said.
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