The Fairfax County Board of Supervisors set the stage yesterday (Oct. 13) for a tax on recreational marijuana at the highest rate allowed when retail sales become legal next summer.
On a 10-0 vote, the supervisors directed staff to develop an ordinance that would impose a 3.5% cannabis tax on top of the state sales tax and a 6% state marijuana tax, all slated to take effect when Virginia starts permitting retail sales on July 1, 2027.
State law requires localities to impose a tax, giving them leeway to set the rate between 1% and 3.5%.
Under a directive initiated by Board Chair Jeff McKay, county staff will return with a draft proposal for a local tax next spring, with enactment following a public hearing.
The directive also tells staff to incorporate the estimated proceeds from a 3.5% tax into the fiscal year 2028 budget to be proposed by County Executive Bryan Hill early next year.
At the Oct. 13 meeting, there was no discussion among supervisors about the possibility of considering a different, lower tax rate.
As part of the same motion, supervisors directed staff to begin preparing zoning regulations that will determine where retail marijuana shops can be located in the county. Staff has been working on the ramifications since Virginia Gov. Abigail Spanberger approved the creation of a retail marijuana market in June.
In response to a query from Hunter Mill District Supervisor Walter Alcorn, staff said they are waiting on clarifying language from the state government, which they expected to receive “in coming weeks.”
After vetoing legislation that would’ve allowed retail sales of cannabis to start at the beginning of 2027, Spanberger worked with the General Assembly to adopt a biennial budget authorizing sales to start in mid-2027, giving state officials more time to craft regulations.
Regulations are being developed by Virginia’s Cannabis Control Authority, which is expected to begin issuing licenses for up to 350 venues statewide in early 2027. Draft rules dictating who can buy recreational marijuana and where and how it can be sold were released in early September, keeping the CCA on track to finalize them in December.
Photo via Richard T/The CBD on Unsplash
