# Va. Code Ann. § 4.1-1004: Marijuana taxes; exceptions

> Virginia · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1004

## Section

- **Citation:** Va. Code Ann. § 4.1-1004
- **Heading:** Marijuana taxes; exceptions
- **Jurisdiction:** Virginia
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Virginia Code / Title 4.1 / Subtitle II / Chapter 10 / Section 4.1-1004

## Text

A. A tax is levied on the sale in the Commonwealth of any marijuana or marijuana products at the rate of six percent before July 1, 2029, and at the rate of eight percent on and after July 1, 2029. Subject to the provisions of subsection C, the tax shall be in addition to any tax imposed under the Virginia Retail Sales and Use Tax Act (§ 58.1-600 et seq.) or any other provision of federal, state, or local law. The tax shall not apply to any sale:

1. From a marijuana establishment to another marijuana establishment.

2. Of cannabis products for treatment under the provisions of Chapter 16 (§ 4.1-1600 et seq.).

3. Of industrial hemp by a grower, processor, or handler under the provisions of Chapter 41.1 (§ 3.2-4112 et seq.) of Title 3.2.

4. Of a hemp product.

B. 1. Each locality shall by ordinance levy an additional local tax on any sale taxable under subsection A at a rate not less than one percent but not greater than three and one-half percent. Other than the tax authorized and identified in this subsection, a locality shall not impose any other tax on a sale taxable under subsection A. The tax imposed by a surrounding county under this subsection shall not apply within the limits of any town. Each locality shall, within 30 days, notify the Authority and any retail marijuana store and microbusiness in such locality of the ordinance enacted pursuant to this subsection. The ordinance shall take effect on the first day of the second month following its enactment and such rate shall be effective for at least three years.

2. Nothing in this subsection shall be construed to (i) prohibit a locality from imposing any tax authorized by law on a person or property regulated under this subtitle or (ii) limit the authority of any locality to impose a license or privilege tax or fee on a business engaged in whole or in part in sales taxable under subsection A if such tax or fee is (a) based on an annual or per-event flat fee authorized by law or (b) an annual license or privilege tax authorized by law and such tax includes sales or receipts taxable under subsection A in its taxable measure.

C. The provisions of Chapter 6 (§ 58.1-600 et seq.) of Title 58.1 shall apply to all sales taxable under subsection A, mutatis mutandis.

D. All revenues remitted to the Authority under this subsection shall be disposed of as provided in § 4.1-614 .

2026, Sp. Sess. I, c. 1 .

## Nearby sections

- [Va. Code Ann. § 4.1-1000 Applications for licenses; procedures; notice to localities; fees; permits.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1000.md)
- [Va. Code Ann. § 4.1-1001 Labor peace agreements.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1001.md)
- [Va. Code Ann. § 4.1-1002 Fees for state licenses.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1002.md)
- [Va. Code Ann. § 4.1-1003 Refund of state license fee.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1003.md)
- [Va. Code Ann. § 4.1-1004 Marijuana taxes; exceptions.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1004.md)
- [Va. Code Ann. § 4.1-1005 Tax returns and payments; commissions; interest.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1005.md)
- [Va. Code Ann. § 4.1-1006 Bonds.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1006.md)
- [Va. Code Ann. § 4.1-1007 Refunds.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1007.md)
- [Va. Code Ann. § 4.1-1008 Statute of limitations; civil remedies for collecting past-due taxes, interest, and penalties.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1008.md)
- [Va. Code Ann. § 4.1-1009 Appeals.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1009.md)
- [Va. Code Ann. § 4.1-1010 Injunction.](https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1010.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_VA_T4.1_SII_C10_S4.1-1004. Check the current official text before relying on it. Not legal advice.