Virginia Gov. Abigail Spanberger is in no rush to launch what could be a $1 billion adult-use cannabis market.
Instead of a Jan. 1, 2027, start date as proposed by state lawmakers, legal adult-use cannabis sales in Virginia would begin the following July under amendments to a recently passed sales bill the Democrat introduced on Tuesday.
The extra time, plus tweaks to rules around “consumer and product safety,” will “ allow for additional time to implement a legal market safely and curb the illicit market,” the governor’s office said.
What are the new proposed changes to Virginia’s adult-use cannabis?
Among Spanberger’s proposed amendments are:
- A sales tax of 6% until July 1, 2029, when the tax automatically increases to 8%
- A cultivation cap for vertically integrated processors of no more than 70,000 square feet.
- A ban on butane extraction outside of commercial manufacturing.
At the same time, Spanberger also introduced separate amendments designed to crack down on illicit vape shops.
Lawmakers are set to take up the proposals on April 22.
Advocates for small cannabis businesses in Virginia had asked for a delay, arguing that allowing a market to launch with only major marijuana multistate operators servicing the market hurts consumers as well as entrepreneurs.
Medical cannabis sales in the state are currently limited to retail outlets owned by one of five existing vertically integrated “pharmaceutical processors.”
Under the legislation lawmakers sent to Spanberger’s desk, existing MMJ operators would be allowed to start selling to all adults 21 and older after paying a $10 million conversion fee.
That’s similar to the approach taken in Maryland, where critics say big business enjoyed a significant head start.
Who is currently licensed to sell medical cannabis in Virginia?
Existing Virginia medical cannabis permits are held by:
- Boca Raton, Florida-based Jushi Holdings
- Chicago-based Green Thumb Industries
- Chicago-based Verano Holdings Corp.
- An affiliate of Millstreet Credit Fund, a Boston-based hedge fund, which paid The Cannabist Co. $130 million for its permit.
- Former creditors of Miami-based MSO Ayr Wellness, which had yet to open any dispensaries in Virginia before it sold its assets in a fall foreclosure sale
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Through the end of March, Virginia cannabis sales exceeded $41 million in 2026, according to state data.
As many as 350 new retail permits would be made available in the state.
Is Virginia’s adult-use marijuana legalization friendly to small business?
Not every observer agreed that delaying the launch of Virginia’s adult-use cannabis sales would help small operators.
In a statement, Adam Stettner, the CEO of FundCanna, a California-based commercial lender that focuses on the legal industry, called the proposal “a classic cannabis policy mistake.”
“Delaying the launch does not help small operators,” he told MJBizDaily. “Time without revenue is risk.”
“Extending the timeline means operators continue carrying overhead, compliance costs and build-out expenses with no path to cash flow,” he added.
“For smaller operators who already struggle with capital access, that creates more uncertainty and tighter credit, not better terms.”
