WASHINGTON BUSINESS JOURNAL: Lawmakers in Richmond signed off on bills Wednesday that would kick off legal recreational marijuana sales in Virginia in 2025 — but it remains unclear how Gov. Glenn Youngkin will receive thelegislation when it hits his desk.
Democrats in both chambers of the State Capitol rectified companion bills on Wednesday, agreeing to get a legal marijuana marketplace administered by the state’s existing Cannabis Control Authority running by May 1, 2025. The state would start takingapplications for cultivating, testing, processing and selling marijuana products beginning Sept. 1.
The products would be taxed at a rate of up to 11.625%, with 8% going to the state, a 2.5% local tax option and 1.125% for K-12 education, according tothe Associated Press. Neighboring Maryland, which launched its retail market in July, has a 9% sales and use tax on retail marijuana sales — the same rate it applies to alcoholic beverages.
The bill also allows localities to hold referendums on whether they want to prohibit retail sales.
The legislation was approved mostly along party lines. Democrats hold slim majorities in the House of Delegates and Senate, and the votes on the marijuana legislation did not produce veto-proofmajorities.
What Youngkin will do with the legislation is unclear. The Republican has been lukewarm on a legalized recreational market, but he may also let that go in exchange for buy-in from state Democrats for legislation around a proposed $2 billion arena and entertainment district in Alexandria’s Potomac Yard, where Monumental Sports & Entertainment would bring the Washington Wizards and Capitals.Youngkin hasn’t said he would veto any marijuana legislation — and it could go into law without his signature.
It’s been a long road to this point for Virginia, even after legalizing possession of marijuana in 2021 andfollowing multiple legislative sessions to get something done. Currently in Virginia, adults can possess up to an ounce of marijuana in public, but sales aren’t allowed unless for medical use. The bills approved Wednesday increase the legal possessionlimit to 2½ ounces, according to the AP report.
Del. Paul Krizek, D-Fairfax County, told the AP the legislation does not give any group an early start in the race to recreational retail sales. He said the final bills contain preferences for certain microbusinesses, something intended to encourage industry participation from historically economically disadvantaged communities.
“These preferences, which will be race-neutral, will offer significant economic opportunities for economically disadvantaged persons, including persons who have suffered hardship or loss due to this country’s war on marijuana,” Krizek told the AP.
Democrats have also seen the establishment of a legal retail market as a way to curb the state’s illegal market for marijuana, which has been valued as much as $1.8 billion. Republicans have been wary that the retail market would create much of a dent inillegal sales.
But a legalized market in Virginia is expected to create thousands of new jobs, and could bring in anywhere from $31 million to $62 million in tax revenue in the first year, and more than $300 million in five years, according to a report from Richmond’s Joint Legislative Audit & Review Commission.
