Gov. Abigail Spanberger, Del. Paul Krizek and Sen. Lashresce Aird have reached an agreement on establishing a retail marijuana market in Virginia. This news comes after Spanberger vetoed the legislation that Krizek and Aird championed through the General Assembly earlier this year.
During a press conference on Tuesday morning, Spanberger, Aird, and Krizek said the retail market for recreational cannabis sales is set to begin on July 1, 2027. The agreement lowers the initial state marijuana tax rate to 6% when sales begin, with the tax increasing to 8% after July 1, 2029. Lawmakers said the lower starting tax rate is intended to help legal businesses compete with the illicit market and encourage consumers to move into the regulated system.
Aird said the framework balances consumer protection, public safety and the need to create a legal market that can effectively replace the illicit market without criminalizing adult users.
“If our goal is to move consumers away from the illicit market, then the legal market has to be able to compete, and keeping the tax rate low at the start is not just an economic decision; it is a public safety strategy,” Aird said.
The compromise implements a $250 civil penalty for public consumption in July 2027 and maintains stronger penalties for businesses that sell marijuana to minors.
The compromise also restores a cap of 350 retail locations statewide, though licenses will be issued gradually by the Cannabis Control Authority based on demand and geographic needs rather than all at once.
That original legislation would have implemented the market on Jan. 1, 2027. This new agreement addresses one of Spanberger’s main concerns that led to her veto: the need for more time to ensure the system can be implemented correctly.
Spanberger tried to amend the legislation back in April, but the legislators rejected the proposal – leading to her eventual veto.
Earlier this year, Spanberger told Virginia Scope that she spoke with governors of other states with retail markets to seek advice.
“Across the board, the top priority that people continue to put forth is do it methodically — because you have to do it right the first time,” Spanberger said in April.
“I appreciate these legislators working with me to create a regulatory framework that Virginians can trust, and in the end we all wanted to deliver a marketplace that the Commonwealth could implement effectively for the long term,” Spanberger said Tuesday.
The legislation was included in the House budget proposal, and with Aird’s attendance at the press conference, it is likely to be included in the Senate’s proposal as well.