FOOD TAX REDUCTION TAKES EFFECT JULY 1st

CHARLESTON, W.Va. -- West Virginians will save money while putting food on the kitchen table thanks to the continued decline of the sales and use tax on food.

Effective July 1, 2008 the Sales and Use Tax on the sale, purchase and use of food and food ingredients intended for human consumption will be reduced from 4% to 3%.

“Since taking office Governor Manchin has taken numerous steps to lower taxes for both individuals and businesses,” said West Virginia State Tax Commissioner Christopher G. Morris.

Under the leadership of Governor Manchin, what was once a 6% tax will now remain at 3% on and after July 1, 2008. “The gradual phase-down of the Sales and Use Tax on food provides a savings of at least $75 million to all West Virginians,” Morris said.

It is important to note the reduced rate does not apply to all food sales. Prepared food, soft drinks, food sold through vending machines, food sold in a heated state, or food sold with eating utensils provided by the seller will continue to be taxed at 6%.

Additional information regarding the application of the sales and use tax on food may be on the Tax Department web site at www.state.wv.us/taxdiv .

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