Fairfax County, Va. – In a unanimous vote on Tuesday, the Fairfax County Board of Supervisors approved a local ordinance that will impose a 3.5% tax on recreational cannabis sales. The rate represents the maximum percentage permitted under Virginia law and will be added to existing state and local sales taxes.
Tax structure and timeline
Virginia law requires each locality to set a cannabis retail tax rate between 1% and 3.5% by ordinance. Fairfax County chose the top end of that range and did not consider a lower percentage during the meeting. The county’s 3.5% levy will be collected in addition to the standard state sales tax, the Virginia Retail Sales and Use Tax Act taxes, and the state’s own cannabis tax.
The statewide cannabis tax is slated to start at 6% and remain in effect until July 1, 2029, when it will increase to 8%. Fairfax County’s local tax will therefore bring the total tax burden on recreational cannabis purchases to roughly 9.5% initially, rising to 11.5% after the state rate climbs.
Revenue earmarked for community needs
Board documents direct the County Executive and the Department of Management and Budget to include projected cannabis‑tax revenue in the FY28 Advertised Budget Plan. The anticipated funds are earmarked for addiction‑treatment programs, public‑education initiatives, health‑care services, and assistance to communities that have historically borne the brunt of drug‑enforcement policies.
Zoning and licensing preparations
Alongside the tax ordinance, the Board is working on zoning rules that will determine where cannabis dispensaries may operate. The Department of Planning and Development is drafting a zoning‑ordinance amendment to establish the necessary land‑use framework. Virginia’s Cannabis Control Authority is finalizing licensing regulations for cultivators, processors and retailers, with licenses expected to be issued in early 2027.
Retail cannabis sales across the Commonwealth are scheduled to begin on July 1, 2027. Fairfax County officials plan to release a draft of the tax ordinance in the spring of 2027, followed by a public hearing to gather community input.State lawmakers have already passed legislation—Senate Bill 230 and House Bill 26—that creates pathways to expunge certain cannabis‑related records and modify past sentences, reflecting a broader shift toward restorative justice in the Commonwealth.
Local impact and next steps
The Board’s decision aligns Fairfax County with other Virginia localities that are preparing for the upcoming market. By adopting the maximum tax rate, the county aims to generate a steady stream of revenue that can be directed toward programs that support families, strengthen public health and address the lingering effects of past drug policies.
County officials will continue to work with state regulators to ensure that licensing, zoning and tax collection processes are in place well before the July 2027 launch. Residents can expect a public hearing on the tax ordinance later this year, providing an opportunity for community members to voice support or concerns.
Fairfax County’s proactive approach demonstrates a commitment to responsible cannabis regulation, fiscal prudence and community‑focused investment as the state moves forward with its first legal recreational market.
Original reporting: Arlington County | FOX 5 DC — read the source article.