Virginia Gov. Ralph Northam’s administration introduced an adult-use cannabis legalization plan that may impose a 21% excise tax and supply some licensing preferences for people and entities harmed by the struggle on medicine.
Adult-use marijuana gross sales would start Jan. 1, 2023, underneath the proposal, which looks as if it has an excellent likelihood of succeeding on this yr’s Legislature, in accordance to the Richmond Times-Dispatch.
Northam, a Democrat, mentioned in November he would press for an adult-use marijuana program.
Virginia is among the many states eyeing authorized marijuana as a method to enhance tax revenues to assist offset the financial impacts of the coronavirus pandemic.
Voter approval of adult-use legalization in New Jersey in November additionally has put stress on states within the Mid-Atlantic and Northeast areas to act.
New York Gov. Andrew Cuomo final week renewed his push for leisure marijuana legalization in his state.
The Virginia measure is predicted to obtain broad help from lawmakers. Both the state House and Senate are managed by Democrats, and Virginia’s Black Caucus on Wednesday endorsed the administration’s proposal, the Times-Dispatch reported.
The legalization plan, which seeks to assist communities most impacted by previous enforcement of marijuana legal guidelines, would come with some low- and no-interest loans and price waivers for eligible people and entities.
Sales reportedly could be restricted to an oz. of marijuana.
Local jurisdictions would give you the option to add a tax of up to 3%. The total tax fee could be roughly 30% when including the 21% excise tax, native gross sales taxes and the non-obligatory native tax.
Virginia launched a restricted medical marijuana program in October 2020.
The state restricted licenses to 5 vertical operations, making the market enticing to licensees who are also eyeing grownup use.