Virginia's proposed recreational pot market would initially feature fewer retail locations and eventually be subject to higher taxation under the latest version of the legislation that Gov. Abigail Spanberger sent back to the General Assembly this week. Spanberger on Monday amended the assembly's legislation that would legalize the sale of marijuana for recreational use in the commonwealth starting in 2027.
Among the governor's amendments to the proposal is a decrease in the initial number of licenses available to operate retail shops. Under the still-pending legislation, the Cannabis Control Authority (CCA), which would oversee the market and issue permits needed to operate marijuana businesses, would be able to issue up to 200 permits for retailers.
The General Assembly had proposed that there be 350 retail licenses available when the market launches. State regulators would be able to adjust the limit starting Jan. 1, 2029.
Spanberger also recommended a new approach to taxing recreational marijuana. Under the governor's amended legislation, there would initially be a 6% state sales tax specific to recreational cannabis before July 1, 2029, after which the rate would increase to 8%.
Read more at Richmond Bizsense
