Virginia Gov. Ralph Northam’s administration introduced an adult-use hashish legalization plan that may impose a 21% excise tax and supply some licensing preferences for people and entities harmed by the struggle on medication.
Grownup-use marijuana gross sales would start Jan. 1, 2023, beneath the proposal, which appears to be like as if it has an excellent likelihood of succeeding on this 12 months’s Legislature, in accordance with the Richmond Instances-Dispatch.
Northam, a Democrat, stated in November he would press for an adult-use marijuana program.
Virginia is among the many states eyeing authorized marijuana as a option 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 strain on states within the Mid-Atlantic and Northeast areas to behave.
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 assist from lawmakers. Each the state Home and Senate are managed by Democrats, and Virginia’s Black Caucus on Wednesday endorsed the administration’s proposal, the Instances-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.
Gross sales reportedly can be restricted to an oz. of marijuana.
Native jurisdictions would have the ability to add a tax of as much as three%. The general tax price can 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.