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Virginia Beach staff lays out zoning, taxes and timeline to implement new state cannabis law
Summary
Deputy City Manager Amanda Jarrett and zoning administrator Hannah Sabo told council that retail cannabis sales authorized by the state will begin July 2027, outlined licensing categories, proposed local zoning rules (conditional use in business districts, by‑right in industrial/agricultural zones), and said the city is considering a 3.5% local tax rate.
Deputy City Manager Amanda Jarrett briefed Virginia Beach City Council on the state law that will permit retail cannabis sales beginning in July 2027 and on local steps needed to implement it.
Jarrett said the state application process is expected to begin Feb. 1, 2027, with issuance of permits in May; preliminary license notices from the Virginia Cannabis Control Authority will give localities 30 days to object. She listed the state license types—cultivation, processing, retail, microbusiness, transporter, delivery and testing—and said the city may adopt zoning rules for each use. "Public consumption will still remain not permitted in the Commonwealth," Jarrett said, adding the locality may also ban use in parks, playgrounds, public streets and sidewalks.
Zoning Administrator Hannah Sabo presented staff recommendations for where each use could be permitted and whether to require a conditional use permit (CUP) or allow the use by right. Sabo said staff recommends permitting cultivation and processing by right in agricultural and industrial districts, permitting testing by right in industrial districts (with conditional use in some agricultural or office districts), and requiring a CUP for retail in certain business districts while permitting retail by right in industrial zones. She added that local regulations could address hours, signage, minimum distances from schools or hospitals, retail floor area limits and security plans.
On taxation, Jarrett said state law implements a 6% statewide cannabis tax that the Commonwealth will retain and authorizes localities to adopt an additional 1%–3.5% local tax. "What has been discussed to date is to implement the adoption of a tax rate at 3 and a half percent," she said; council members discussed regional coordination on the local rate to remain competitive.
Council members asked about enforcement and impairment detection. Deputy Chief Jeff Wilkerson told the council there is no simple roadside test for cannabis impairment comparable to a breathalyzer for alcohol: "We do have drug recognition experts... but it is difficult to do that in the field," he said, and added officers can investigate visible intoxication and erratic driving.
Jarrett said staff will update boards and commissions, take zoning amendments to the Planning Commission and present an ordinance to council for adoption prior to Feb. 1, 2027 so local ordinances can become effective in July. She said the communications office will run a public information campaign to explain consumer age limits, prohibitions (no drive‑throughs, no more than 2 ounces per transaction, and 21+ purchase age), and other state regulations.
The presentation included a planned public outreach strategy and recommended regulatory elements; council members asked for further analysis on local tax competitiveness and how many of the 350 statewide retail licenses the city might expect to host. Jarrett and Sabo said they will continue to track statewide license allocation and will return with draft ordinance language and outreach plans.
The next procedural step is a Planning Commission review of zoning amendments and a future council vote on local implementing ordinances; staff did not schedule a final adoption vote at this meeting.
