Virginia is 11 months from legal cannabis sales. Where will Alexandria allow shops?
State bill eliminates local opt-outs; city has not publicly addressed retail zoning
Virginia is on track to launch legal cannabis retail sales by November 2026. Still, Alexandria, which cannot opt out under the proposed legislation, has not publicly indicated where dispensaries could locate, whether it will levy a local tax, or how it will approach enforcement.
The Joint Commission on the Future of Cannabis Sales unveiled its legislative blueprint Tuesday, capping months of hearings ahead of the General Assembly's January convening. The proposal eliminates local opt-outs, sets a Nov. 1, 2026, start date for retail sales, and gives localities control over zoning and the option to levy a cannabis tax of up to 3.5%.
Gov.-elect Abigail Spanberger has pledged to sign retail cannabis legislation, a sharp reversal from outgoing Gov. Glenn Youngkin, who vetoed similar bills twice.
“By allowing opt-out, we’re really allowing opting into the black market,” Del. Paul Krizek, D-Fairfax County, the commission’s chair, told Cardinal News. “So we won’t have any dry counties the way there is with alcohol.”
But while state lawmakers finalize the framework, Alexandria has not publicly addressed retail cannabis. The city’s official marijuana guidance page, last updated in December 2023, makes no mention of retail zoning, taxation, or business licensing.
The Alexandria Brief has requested comment from the city, the Alexandria Economic Development Partnership, and Mayor Alyia Gaskins on whether the city has begun reviewing zoning for cannabis retail, whether it will levy the optional local tax, and what buffer requirements it is considering. This story will be updated with any response.
What the bill would allow
The legislation envisions 350 retail cannabis licenses statewide — slightly fewer than Virginia’s 402 ABC liquor stores, according to Cardinal News.
Stores would not be permitted within 1,000 feet of schools, churches, hospitals, playgrounds, child day programs, substance use disorder treatment facilities, or government buildings. The commission also proposed a minimum distance of 1 mile between stores — a provision that drew objections, including from Sen. Adam Ebbin, D-Alexandria.
Krizek estimated the spacing rules would result in “two to three” stores per delegate district, “not 20.”
The bill would impose an 8% state tax on cannabis sales, with localities permitted to add up to 3.5% — for a combined rate of 11.5%. “We want to be competitive with Maryland,” Krizek told Cardinal News. Maryland’s cannabis tax recently rose to 12.5%.
A new revenue stream — unlike ABC
Unlike state-run ABC liquor stores, which contribute all profits to Richmond’s general fund, the cannabis bill would give localities a dedicated revenue stream for the first time.
Virginia ABC contributed $635.7 million to the commonwealth’s general fund in fiscal year 2024. Alexandria’s six ABC stores generate no direct revenue for the city.
If Alexandria levies the full 3.5% local cannabis tax, rough estimates based on sales in other states suggest the city could see $860,000 to $1 million annually — a modest sum in a $956.5 million municipal budget, but one that wouldn’t require raising taxes on residents.
The city passed its current budget in April amid what Mayor Alyia Gaskins called “a time of great economic uncertainty,” holding the line on property taxes while bracing for federal workforce cuts.
Ebbin raises enforcement concerns
Ebbin, Alexandria’s state senator, has been an active voice in shaping the legislation — and has raised concerns about enforcement and scope.
During Tuesday’s commission meeting, Ebbin said the current $25 penalty for public cannabis consumption is “much too lenient,” according to the Virginia Mercury.
He also questioned a provision that would require the commission to study involving the Virginia Alcoholic Beverage Control Authority in cannabis enforcement. “We made a conscious decision, I think it was in 2021, to establish a Cannabis Control Authority to regulate cannabis,” Ebbin said. “I don’t know why we’re bringing back a study of the ABC being involved in it.”
When another provision floated the idea of “cannabis event permits” at farmers’ markets, Ebbin objected on the grounds that cannabis should be tightly controlled. Some in the audience booed.
“See, the public likes it,” Krizek quipped.
“The public is not always right,” Ebbin responded, according to Cardinal News.
Local questions unanswered
Alexandria held a community forum on cannabis in April 2024 through Agenda Alexandria, featuring Commonwealth’s Attorney Bryan Porter, officials from the Virginia Cannabis Control Authority, and dispensary executives. Porter has previously said residents raised concerns about public use, access for children, and impaired driving.
But the city has not publicly addressed how it will handle retail cannabis since the commission eliminated local opt-outs this fall.
Key questions remain:
Zoning: Which commercial zones will permit cannabis retail? Will the city require special use permits?
Buffers: The state bill mandates 1,000-foot setbacks from schools, churches, and other facilities. In a dense city like Alexandria, those requirements could significantly limit viable locations — particularly in Old Town and other historic neighborhoods.
Taxation: Will the city levy the full 3.5% local tax, a partial rate, or none at all?
Enforcement: How will police handle public consumption complaints? Will the city dedicate resources to compliance?
What’s next
The General Assembly session begins Jan. 14. If lawmakers pass the bill and Spanberger signs it, retail cannabis sales could begin Nov. 1, 2026 — less than 11 months away.
The Cannabis Control Authority would begin accepting license applications on July 1, 2026, with up to 100 “microbusiness” licenses for small operators eligible to launch as early as September.
Alexandria has until then to determine where cannabis shops can open, how they’ll be regulated, and whether the city will capture a share of the revenue.
This story will be updated with responses from the city.