Fairfax County moves toward a 3.5% local tax on recreational marijuana, the maximum Virginia allows

The Fairfax County Board of Supervisors voted 10-0 on Oct. 13 to direct county staff to develop an ordinance imposing a 3.5% local tax on recreational marijuana sales, the highest rate Virginia law allows, FFXnow reported. FOX 5 DC also reported the unanimous vote.

Under state rules, localities must set a local cannabis retail tax rate by ordinance, choosing a rate between 1% and 3.5%, according to FOX 5 DC. Both outlets reported that supervisors did not discuss a lower rate at the meeting. The county tax would apply on top of state and local sales taxes and Virginia's state marijuana tax, which FOX 5 DC reported is set at 6% until July 1, 2029, before rising to 8%.

According to FFXnow, the directive was initiated by Board Chair Jeff McKay. County staff are to return with a draft ordinance in spring 2027, and the tax would be enacted after a public hearing. Staff were also told to include estimated revenue from a 3.5% tax in the fiscal year 2028 budget that County Executive Bryan Hill is to propose early next year, FFXnow reported.

In the same motion, supervisors directed staff to begin preparing zoning rules for where retail marijuana shops could be located, according to FFXnow. In response to a question from Hunter Mill District Supervisor Walter Alcorn, staff said they were waiting on clarifying language from the state government, which they expected "in coming weeks," FFXnow reported.

Virginia retail cannabis sales are set to begin July 1, 2027. FFXnow reported that Virginia's Cannabis Control Authority is expected to begin issuing licenses for up to 350 venues statewide in early 2027 and is on track to finalize its rules in December.