Virginia Compromise Bill Could Set 9% Tax Rate on Cannabis Sales

Retail cannabis sales in Virginia would be subject to a combined tax rate of up to 9% starting next year under a compromise bill expected to advance through the state legislature this week.

The latest version of a negotiated measure (HB 698) would legalize retail marijuana sales with a proposed 4.5% state sales tax and allow local governments to levy an additional 4.5%, which mirrors the House’s original proposal. The Senate initially proposed a 12.5% state tax on sales, with localities authorized to add 3.5%. Retail sales would start no sooner than May 1, 2025. The bill notes ...