Virginia leaders announce deal to launch legal retail marijuana sales in 2027

Virginia would move from legal marijuana possession to legal retail marijuana sales under a budget agreement announced Tuesay by Governor Abigail Spanberger, Senator Lashrecse Aird and Delegate Paul Krizek.

The proposal would create a regulated adult-use cannabis market, with recreational retail sales scheduled to begin July 1, 2027. If approved, it would mark a major change in Virginia cannabis policy. Adults 21 and older have been allowed to possess marijuana since 2021, but the state has not had a legal retail system for recreational sales.

Supporters say that gap has allowed the illicit market to continue operating without the testing, labeling, age-verification and consumer-safety rules that would apply to licensed businesses.

Spanberger said the agreement would give the Cannabis Control Authority time to develop regulations, testing standards and enforcement systems before sales begin. The authority would begin accepting license applications on February 1, 2027.

The proposal would allow up to 350 retail cannabis establishment licenses and would raise the adult possession limit from one ounce to two ounces. It also includes child-safety provisions, including bans on cartoon advertising, child-resistant packaging requirements and restrictions on products shaped like animals, fruits, vehicles or people.

Retail stores would have to be at least 1,000 feet from schools, hospitals, playgrounds and drug treatment facilities. The plan also calls for escalating penalties for retailers that fail to check identification, including possible license revocation for repeated underage sales.

The agreement would also shift oversight of intoxicating hemp products to the Cannabis Control Authority. Supporters say the change is aimed at closing a loophole that allowed some highly intoxicating THC products to be sold with limited oversight.

Aird said Virginia legalized adult possession years ago but left the illicit market to fill the retail gap. Krizek said the compromise is intended to create a market that is safe and fair while giving small businesses, farmers and microbusinesses a chance to compete.

Revenue from cannabis sales would support early childhood care and education, K-12 education, behavioral health and substance-use prevention programs, public health efforts and the Cannabis Equity Reinvestment Fund.

The proposed state tax would begin at 6 percent and increase to 8 percent after July 1, 2029. Localities could add a local tax of 1 percent to 3.5 percent, in addition to the existing retail sales tax.

The agreement still must move through the budget process before becoming law. If approved, recreational marijuana sales in Virginia would begin July 1, 2027.