If you want to know why Louise Lucas is pushing hard for the end to data center tax breaks, look no further than what we saw today in Richmond, where we had Gov. Abigail Spanberger announcing a legislative deal to create a retail weed market in Virginia, going back on a May veto after getting intense blowback.
Most notably, the governor caved on her push to make it a Class 2 felony to transport at least 50 pounds of cannabis “or equivalent amount of marijuana products” into Virginia to sell or distribute.
The agreement does increase, at Spanberger’s insistence, the penalty for public consumption starting in July 2027, raising the penalty from a $25 fine to a $250 fine; cannabis advocates point out that consumption laws have historically fallen hardest on Black, Latino and low-income Virginians.
Otherwise, the legislation shepherded through the General Assembly earlier this year by Del. Paul Krisek, D-Fairfax, and State Sen. Lashrecse Aird, D-Henrico, will pretty much move forward as was, before the Spanberger veto.
The proposed compromise legislation would create a Cannabis Control Authority that would begin accepting applications for retail cannabis establishment licenses on Feb. 1, 2027, and would increase the possession limit from 1 ounce to 2 ounces.
Sales would begin on July 1, 2027, which, according to a press release from the governor’s office sent to media outlets today, would give the Cannabis Control Authority “sufficient time to develop regulations, establish testing and safety standards, and build the necessary oversight framework to ensure the marketplace launches safely and responsibly.”
The legislation would establish a 6 percent state tax rate on cannabis products, which would increase to 8 percent in 2029; localities would also be able to adopt an additional 1-3.5 percent local tax combined with the existing retail sales and use tax.
“This is what good governing and collaboration look like — bringing people together, listening to families and public safety leaders, and focusing on solutions that are practical, enforceable, and in the best interest of Virginians. In the end, we all wanted to deliver a marketplace that the Commonwealth could implement effectively for the long-term,” Spanberger said, per the press release from her office.
Data centers, hint, hint.
“Virginia legalized adult possession years ago, but without a regulated retail market, we left the illicit market to fill the gap,” Aird said. “This compromise gives us a smarter and safer path forward — one that protects consumers, keeps products tested and accurately labeled, and creates a legal marketplace that is affordable and accessible enough to actually compete. Too many have suffered real harms for us to get here, and this agreement reflects responsible regulation that protects young people, gives Virginians a safe legal option and avoids criminalizing adult use.”
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Chris Graham
