West Virginia Food Sales Tax Reduction
- Sales Tax News
- Jun 28, 2012 | Susan McLain
The state sales tax on food in West Virginia will reduce by 50% from 2% to 1% July 1, 2012. It is intended for the West Virginia food sales tax to be “completely abolished” by July 2013.
However, the reduction has a contingency: Jeff Kessler, Senate President, D-Marshall, said “…reducing the food tax (by 1 percent) is contingent on us having a rainy day fund equal to 12.5 percent of our annual budget. We’re on track for that to occur next year. If we are still on track on Dec. 31 of this year, the food tax will be completely eliminated next year.”
In addition to the food tax reduction, “West Virginia leaders have been working to gradually reduce the state’s sales tax in recent years; it had been as high as 6 percent. Each time the sales tax is reduced by 1 percent, it means $24 million less in tax revenue collected in West Virginia.”
Despite concerns, Senate President Kessler feels the food tax “…is the most significant, far-reaching change to happen in the state. The food tax most affects families, and those on fixed incomes.”
The food sales tax bill, Senate Bill 1001, was signed into law last August.