Virginia adult-use cannabis sales to begin July 2027 under new deal

Virginia will at long last launch the first regulated adult-use cannabis marketplace in the South next summer after all.

Under a deal announced Tuesday that resolves a standoff between Gov. Abigail Spanberger and state lawmakers, the first sale in what’s expected to become a billion-dollar marijuana market will come July 1, 2027.

The compromise between Spanberger, who had vowed to sign off on adult-use cannabis sales after years of delay before a shocking veto last month, and state lawmakers comes as part of the state’s budget process – the last chance that Virginia officials had to come to a compromise and start sales next year.

Virginia had legalized adult-use cannabis in 2021 but did not allow sales, thanks in part to obstructionism from former Gov. Glenn Youngkin, whom Spanberger was elected to replace last November.

“In the end, we all wanted to deliver a marketplace that the Commonwealth could implement effectively for the long-term,” Spanberger said in a statement.

And in the end, both the governor and lawmakers agreed to compromises.

How many Virginia adult-use cannabis licenses will be available?

Among the terms of the deal announced Tuesday:

• No more than 350 retail cannabis stores will be allowed statewide, with the first applications available Feb. 1, 2027
• Sales will be subject to a state tax rate of 6% that will automatically increase to 8% on July 1, 2029, with localities allowed to impose an additional tax ranging from 1% to 3.5% on top of existing sales and use taxes
• Restrictions on edibles and packaging, including prohibited advertisements and product types
• And an end to a “hemp loophole … which allowed highly intoxicating THC products to proliferate in Virginia with limited oversight,” according to the governor’s office

The deal reflects a midway point between the cannabis retail framework lawmakers sent to Spanberger’s desk earlier this spring and the counter-proposal the governor replied with that lawmakers rejected, setting the state up for last month’s stalemate.

For example, lawmakers wanted the statewide retail cap of 350 stores, while Spanberger countered with 250. And lawmakers had wanted a Jan. 1, 2027, launch date, while the governor pushed for July.

“This compromise gives us a smarter and safer path forward – one that protects consumers, keeps products tested and accurately labeled and creates a legal marketplace that is affordable and accessible enough to actually compete,” state Sen. Lashrecse Aird said in a statement.

“Too many have suffered real harms for us to get here, and this agreement reflects responsible regulation that protects young people, gives Virginians a safe legal option and avoids criminalizing adult use.”

Will Virginia’s adult-use cannabis market have social equity?

Advocates, including some who expressed fears over increased criminal penalties for cannabis use in Spanberger’s proposal, such as a new $250 fine for public consumption, welcomed Tuesday’s compromise.

“This bill establishes a consumer-friendly regulated marketplace, improves public safety and provides clear rules for everyone involved,” said JM Pedini, the executive director of the Virginia chapter of the National Organization for the Reform of Marijuana Laws (NORML), which lobbied for the sales bill.

“Today’s announcement is an important milestone, and we look forward to continuing the work of building a marketplace that meets consumer demand while prioritizing safety, accountability and access,” Pedini added.

For now, the only cannabis operators in Virginia are the holders of the state’s five vertically integrated medical cannabis permits – two of which are held by affiliates of the same Boston-based investment fund, as MJBizDaily recently reported.

Further details, including whether those operators will have to pay a conversion fee or how social-equity operators will be supported to compete with existing players, were not immediately available to MJBizDaily.

Medical sales in 2026 through the end of May stood at $75.2 million, according to the state Cannabis Control Authority.