Virginia Cannabis Retail
Virginia Approves Retail Sales of Recreational Marijuana, Shops to Open in 2027
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Virginia has officially approved a retail marijuana market, making it legal to buy recreational cannabis in stores starting July 1, 2027 — five years after the state became the first in the South to legalize possession, according to Scripps News. The Virginia General Assembly gave final approval to the budget legislation on June 29, 2026, ending a long political standoff that left the state in the odd position of allowing people to own marijuana but nowhere legal to buy it.
The new law caps retail licenses at 350 stores, raises the possession limit from 1 ounce to 2 ounces, and is expected to generate $51 million in tax revenue in its first year, according to WRTV.
Five Years of Legal Weed With Nowhere to Buy It
Virginia legalized marijuana possession in July 2021. But the state never set up a system to sell it. That created what insiders called a "policy gap" — cannabis was legal to hold, but the only way to get it was through a medical dispensary or the black market. The illicit market grew into a $3 billion industry, according to MJBizDaily.
Political gridlock kept retail sales blocked for years. Former Governor Glenn Youngkin twice vetoed bills to open a retail market. In 2024, he said, "Anybody who thinks I'm gonna sign that legislation must be smoking something," according to KJRH. Democrat Abigail Spanberger won the governorship in November 2025 and made legalizing retail sales a campaign promise.
How the New Market Will Actually Work
Retail stores cannot open until July 1, 2027. The Virginia Cannabis Control Authority will start accepting license applications on February 1, 2027, according to Fox 13 Now. The law caps the number of stores at 350 statewide. Existing medical marijuana operators can enter the recreational market, but must pay a $10 million entry fee.
The state will charge a 6% excise tax on top of regular sales tax. That rate jumps automatically to 8% in 2029. Local governments can add another 1% to 3.5% on top of that, according to KPAX. Stores must be at least 1,000 feet from schools and hospitals. The law also bans cartoon-style ads and products shaped like animals or fruit, to keep them away from children.
Racial Equity Concerns Cloud an Otherwise Popular Bill
The legislation is not without critics. Advocacy groups including the ACLU of Virginia and Marijuana Justice have condemned one provision that raises the fine for public marijuana use from $25 to $250 — a 900% increase. Chelsea Higgs Wise, executive director of Marijuana Justice, called it a "poverty penalty," according to 10News.
Their concern is backed by data. Black Virginians are already 3.29 times more likely than white residents to be charged with public marijuana use. Critics argue the steeper fine will make that disparity worse. Supporters of the bill counter that 30% of tax revenue goes to the Cannabis Equity Reinvestment Fund, which directs money to communities harmed by past drug enforcement, according to KOAA.
Governor Spanberger Calls the Deal a Model for Governing
Governor Spanberger initially vetoed the first version of the 2026 retail bill in May, saying regulators needed more time to build "strong oversight from day one." A compromise was struck on June 16, folding the retail framework into the state budget, according to WXYZ. The General Assembly passed it two weeks later.
Spanberger framed the final deal as a win for practical leadership. "This is what good governing looks like — bringing people together and focusing on solutions that are practical," she said. Industry analysts say Virginia's market could eventually reach a $2 billion valuation, rivaling states like Michigan, according to Denver7.
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