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West Virginia food tax drops Sunday

Tax to fall to 2 percent

December 28, 2011
By BRETT DUNLAP (bdunlap@newsandsentinel.com) , Parkersburg News and Sentinel

PARKERSBURG- West Virginia's food tax will go from 3 percent to 2 percent Sunday as local officials are looking forward to the day it will be eliminated.

The state Legislature passed a bill over the last year to reduce the food tax and a plan is in place to eliminate it. Senate Bill 1001 reduced the food tax to 2 percent on Jan. 1, then to 1 percent on July 1.

The bill removes the tax if on Dec. 31, the percentage of the general revenue budget in the Rainy Day Fund is at least 12.5 percent.

Jim Oppe, owner of the local Foodland stores, said figures he has heard estimate this tax cut will put an average of $48 into a person's pocket.

''That money is better off in people's pockets,'' he said.

The tax was originally at 6 percent in a time of financial difficulty for the state. However, as the state has controlled its spending and continued to have a surplus, legislators began campaigning for its removal.

''I have campaigned for it since I have been down (in Charleston), said Delegate Tom Azinger, R-Wood.

Azinger said when the food tax was at 6 percent studies showed around $36 million went to Ohio from West Virginia border towns as people crossed state lines to do their grocery shopping because Ohio didn't have a food tax.

''When we can get it down to 1 percent and then eliminate it, it will be great for business and really help people in the lower income brackets,'' Azinger said. ''It will also make us competitive with the surrounding states.''

Oppe said a reduction in the tax is "a win for everyone.'' People won't be tempted to drive over to another state to do their grocery shopping and business benefits from more customers, he said.

Oppe was a part of OMEGA (The West Virginia Oil Marketers & Grocers Association), which worked to get the tax eliminated.

''I am proud that we were able to work on getting this done,'' he said. ''When people are able to put money back in their pockets, that is a good thing.''

State Sen. David Nohe, R-Wood, said he was glad the tax cut is being done.

''It will make us more competitive with the states around us,'' he said. ''It will bring in more money.

''It is a great deal for West Virginia, especially in our border cities.''

 
 

 

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Fact Box

Food Tax Changes

West Virginia's food tax will drop from 3 percent to 2 percent Sunday as local officials are looking forward to the day it will be eliminated.

Senate Bill 1001 reduced the food tax to 2 percent on Jan. 1, then to 1 percent on July 1. The bill removes the tax if on Dec. 31, the percentage of the general revenue budget in the Rainy Day Fund is at least 12.5 percent.

Local officials said the reduction and eventual elimination of the food tax will make the state more competitive with surrounding states where people in border towns have crossed over to buy their food in a state without a food tax.