Virginia “Legalized” Weed Three Years Ago

Disclaimer: Because I get a lot of emails, letters and social media messages, let me be clear about this week’s topic. This blog is merely a look at Virginia’s fledgling marijuana industry. I’m not taking sides…only presenting some facts. If you are offended by weed or jokes about weed, please skip this week)

On July 1st, 2021, in the middle of the Great Pandemic, a new law went into effect in Virginia that “legalized” marijuana. Yet, in point of fact, the new law merely decriminalized weed. To quote a famous Monty Python line “…and there was much rejoicing.” As the first southern state to move in this direction, Virginia’s General Assembly and Governor Northam created the Virginia Cannabis Control Authority (VCCA), the state agency in charge of regulatory power over the industry.

But so far, VCCA plans have gone mostly “up in smoke.” (You knew a pun was coming right?) The Commonwealth has not enacted a retail market. Virginians are still confused about basic laws regarding marijuana (you can’t possess more than an ounce, can’t smoke in public, and can’t sell it). The VCCA has no enforcement powers. And Virginia’s treasury is not seeing the big influx of cash, in the form of marijuana taxes.

Vermont leads the nation in weed use with almost 35% of residents puffing the wacky weed. Meanwhile, they actually do smoke marijuana in Muskogee, with Oklahoma reporting cannabis consumption at 26%. Virginia ranks just below the national average at 20.2% and Alabama is the least stoned state, with only 13.8% of residents toking the devil’s lettuce.

Estimates from the Motley Fool predict that Virginia’s percentage of adults buying recreational weed would bring in almost $140 million in additional tax revenue. By comparison, Virginia collected over $75 billion in tax dollars last year (or about $11,500 per person). If my math is right (and it’s probably not because I was an English Major) that means a fully functioning cannabis retail market would bring in .0018539% more tax dollars for the Commonwealth.

Is it worth it? From a purely economic standpoint, I find it hard to make the argument that pot sales tax will cure all of our ills. But from a freedom standpoint, and you should all know how much I love freedom, I say “what can it hurt?”

Either way, the last three years Virginians have been in a long state of limbo…stuck between two sides. The point is that we either move forward with legalization and a retail market or we don’t. In other words, as my dad used to say, “It’s time to sh__ or get off the pot.”