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Virginia Legalizes Recreational Marijuana

In February of 2021, Virginia legalized recreational marijuana. However, this program will have a slow start as the measure passed includes a clause that will require the General Assembly in 2022 to reenact a number of provisions of the bill, including those that detail the regulatory and market structure such as licensing.

When Will Recreational Marijuana be Legal in Virginia?

The measure also establishes a Jan. 1, 2024, enactment date for the law. Retail sales would begin then, as long as lawmakers reenact the provisions that would enable a commercial market.

In a compromise reached by Virginia lawmakers in a conference committee, legislators agreed to establish an independent agency, the Cannabis Control Authority, to oversee an adult-use market. That agency will convene this summer.

Subject to reenactment next year, the legislation agreed to would impose a ceiling on licenses across the different sectors of the industry:

  • Retail stores: 400
  • Wholesalers: 25
  • Manufacturing facilities: 60
  • Cultivation facilities: 450

The measure also includes the following provisions:

  • Vertical integration would be limited to small businesses.
  • Social equity licenses would be distributed early on in the licensing process. Qualified applicants would have to hold at least a 66% ownership stake in the business.
  • Adult-use marijuana product sales would be taxed at 21% in addition to the standard state sales tax of 6%. Municipalities could charge up to an additional 3%.

Are you interested in applying for a cannabis business license in Virginia? Now is the time to start to put the pieces of your competitive application together. Contact Canna Core for a consultation and to begin your business plan. We are looking forward to hearing from you!