Marijuana legalization, small business taxes, budget part of Virginia special session agenda
(The Center Square) – Work on bills to legalize marijuana, set policy for taxes on businesses, enact the state budget and finish other 2021 legislative priorities will take place during Virginia’s special session, which convenes Wednesday, immediately following the state’s regular session.
Gov. Ralph Northam called for the special session to extend work on these bills. The special session will last 30 days, which will align the legislative calendar with the customary 46-day length used for odd-numbered years.
“People across our Commonwealth are facing tremendous challenges, and they expect their elected officials to deliver results,” Northam said in a statement. “I look forward to continuing our work together to move Virginia forward.”
Both chambers of the General Assembly have passed a series of bills, which affect tax policy, drug policy, criminal justice policy and other issues. However, the chambers will have to work out differences in the specifics of these bills, many of which see the House taking a more aggressive approach to reform and the Senate taking a more constrained approach. Democrats have a majority in both chambers.
House Bill 2312 and Senate Bill 1406 are competing bills to legalize marijuana that passed their respective chambers and both bills have been sent to the other chamber. Both bills legalize the recreational cultivation, sale and use of marijuana, but differ on local government authority. In the House version, all localities will be forced to allow retail sales of marijuana within their jurisdiction, while the Senate version allows local governments to opt out. In the House version, retail sales would still be subject to local zoning laws.
In both versions, marijuana sales would begin in 2024. Adults aged 21 years or older could purchase the product for recreational use and strict ID checks would be in place, similar to rules set around alcohol sales. After covering the costs of implementation, the bulk of revenue would be used for at-risk 3- and 4-year olds. Northam has indicated support for legalizing marijuana.
Lawmakers will also consider legislation that sets the state’s tax conformity with the federal government. Although tax conformity is normally a routine matter, both chambers have introduced bills that would only grant partial conformity, but have different approaches regarding expense taxes related to Paycheck Protection Program loans to businesses.
Federal lawmakers made all expenses on these loans tax deductible at the federal level. The Senate version would make up to $100,000 worth of expenses tax deductible at the state level and the House version would only make up to $25,000 worth of expenses tax deductible. Members of the business community have urged lawmakers to take the Senate’s approach, noting that businesses used this money to ensure people stayed employed and are still struggling to pay their bills due to pandemic-related revenue losses.
An important piece of legislation that has yet to make process in either chamber is the state’s budget bill. However, lawmakers are expected to reveal their version of the budget bill some time this week.
Other bills being considered include offering in-state tuition to illegal immigrants, ending most mandatory minimum sentencing requirements, abolishing coal subsidy programs, mandating sick leave for certain employees and allowing local school boards to allocate funding toward broadband expansion.
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