Vermont: Bipartisan Lawmakers File Bill to Expand Marijuana Sales, Cut Excise Tax, and Allow Events

A bipartisan group of six Vermont lawmakers has filed legislation that would make sweeping changes to the state’s regulated marijuana market, including higher THC limits, larger retail purchase caps, new event and delivery options, and a reduced excise tax. The proposal, Senate Bill 278, was introduced Tuesday and immediately read for the first time before being referred to the Senate Committee on Economic Development, Housing and General Affairs. The bill is sponsored by Senators Ram Hinsdale, Alison Clarkson, Tanya Vyhovsky, Ginny Lyons Gulick, Brian Westman, and Anne White, reflecting support from both sides of the aisle.

As filed, the legislation would eliminate Vermont’s current THC concentration limit for marijuana flower and raise the allowable THC cap for cannabis concentrates sold to the public to 70%. It would also double the per-transaction retail purchase limit, allowing adults 21 and older to buy up to two ounces of marijuana or its equivalent in products in a single sale.

The bill would authorize the Cannabis Control Board to issue several new permits and endorsements, including for cannabis events, event administrators, delivery services, and on-premises consumption. Licensed businesses could host single-day cannabis events at approved locations, while retailers meeting certain requirements could apply to allow on-site consumption alongside food service.

Advertising rules would also be revised by removing the requirement that marijuana advertisements be submitted to the Cannabis Control Board for pre-approval, while maintaining limits intended to reduce youth exposure. In addition, the measure proposes cutting the state’s cannabis excise tax from 14% to 10%.

At the local level, municipalities that have not yet voted on whether to allow marijuana retailers would be required to place the question on the ballot at the 2026 general election. The bill also expands access to the Cannabis Business Development Fund and includes a $1 million appropriation to support grants and loans for smaller and equity-focused marijuana businesses.

If enacted, most provisions would take effect July 1, 2026, with certain municipal voting requirements effective upon passage.