Supervisors propose a 3.5 percent tax on marijuana sales
The Fairfax County Board of Supervisors approved a motion on Oct. 13 to consider a 3.5 percent sales tax on recreational marijuana.
The biennial budget adopted by the Virginia General Assembly in June authorized the establishment of a cannabis retail market with sales beginning July 1, 2027. Retail licenses would begin to be issued in early 2027.
The Cannabis Control Act requires local governments to approve an ordinance setting a tax rate between 1 percent and 3.5 percent on cannabis retail sales.
The local tax is in addition to the state sales and use tax on the same product. The state marijuana tax starts at 6 percent and rises to 8 percent after July 1, 2029.
Related story: State leaders announce a compromise on a retail weed market
The motion proposed by Board of Supervisors Chair Jeffrey McKay calls for the director of Tax Administration to present a proposed ordinance to the BoS by spring 2027 setting the local tax rate on retail cannabis sales at 3.5 percent. A public hearing on the tax rate would be held on May 1, 2027.
The motion also directs the county executive and the Department of Management and Budget to include estimated revenue from the cannabis tax in the FY 2028 Advertised Budget Plan.
The Department of Planning and Development will craft a separate Zoning Ordinance amendment regulating the hours of operation for cannabis retailers and prohibiting the consumption and possession of cannabis in any public place or on public school property.
The Virginia Cannabis Control Authority will develop regulations for licensing cultivators, processors, and retailers by the end of 2026.