The Virginia General Assembly passed legislation allowing Williamsburg to impose a 3.5% local tax on retail cannabis sales beginning July 2027. The new framework preserves local zoning authority while establishing state-level licensing. Council also has the option to pursue a voter referendum for school construction funding.
Potential for local cannabis taxes included in City Council update
The Williamsburg City Attorney recently presented the city’s 2026 Legislative Update to Council at a recent meeting and one of the topics covered was the state budget bill’s establishment of a cannabis retail licensing framework. The bill places licensure and operation under the Virginia Cannabis Control Authority, preserves local zoning and business license authority, and permits a 3.5% local tax on retail sales along with restrictions on public consumption. The framework takes effect July 1, 2027. A related provision allows localities to place a referendum before voters authorizing an additional 1% sales tax for school construction, tied to bond terms of up to 20 years.
