Cannabis plant grows in the Amsterdam Cannabis College on February 7, 2007 in Amsterdam, Netherlands. (Credit: Christopher Furlong/Getty Images)
FAIRFAX COUNTY, Va. - The Fairfax County Board of Supervisors unanimously voted Tuesday to move forward with a 3.5% local tax on recreational marijuana sales, moving to enact the highest rate permitted by Virginia law. It comes as the commonwealth prepares to launch its retail marijuana market.
What we know:
Under state rules, localities are required to establish a local cannabis retail tax rate by ordinance. They have the freedom to set it between 1% and 3.5%.
During Tuesday's meeting, the board did not discuss going with a lower percentage.
Fairfax County's 3.5% rate will be applied in addition to standard state and local sales taxes, as well as taxes under Virginia's Retail Sales and Use Tax Act and Virginia's state marijuana tax.
Virginia's statewide marijuana tax is set to begin at 6% until July 1, 2029. After that it will rise to 8%.
Fairfax County leaders will share a draft proposal of the tax ordinance in spring 2027. That will be followed by a public hearing.
Board documents also instruct the County Executive and Department of Management and Budget to include the estimated revenue that will be generated from the tax in the County Executive's FY28 Advertised Budget Plan.
In addition to the tax policy, the board is determining where marijuana dispensaries will be allowed to operate. The Department of Planning and Development is separately creating a Zoning Ordinance amendment to establish the necessary local land-use rules.
Virginia prepares for retail cannabis market
Dig deeper:
The local preparations come as Virginia prepares for a commercial rollout. The Cannabis Control Authority previously said it was crafting regulations for the licensing of cultivators, processors, retailers and other regulated activities. Licenses are expected to be issued in early 2027.
Retail cannabis sales in Virginia are set to begin on July 1, 2027.
In July, Virginia leaders finalized a timeline for launching the state's retail cannabis market. Future tax revenue from the recreational cannabis sales will be allocated to addiction treatment programs, public education, health care initiatives and communities that have been historically disproportionately impacted by drug enforcement.
READ MORE | Virginia locks in timeline for 2027 retail marijuana market
Several cannabis-related bills have already gone into effect, including Senate Bill 230 and House Bill 26, both of which created pathways to expunge certain marijuana-related records and modify past sentences.
The Source: Information in this article is from the Fairfax County Board of Supervisors and past FOX 5 DC reporting.