West Virginia Food Tax Falls to 3 Percent
Governor Joe Manchin announces financial savings for West Virginia families

CHARLESTON, W.Va. -- Governor Joe Manchin and State Tax Commissioner Christopher G. Morris today announced the final phase-down of the sales and use tax on food, commonly called the food tax. Effective on July 1, 2008, the food tax will be reduced to 3 percent.

“Putting food on the table is not a luxury, it is a necessity,” Governor Joe Manchin said. “Food prices across the globe are increasing. We can help lift the financial strain here at home by lowering the state’s food tax to 3 percent.” The reduction in rate from 6 percent to 3 percent provides a savings of at least $75 million for all West Virginians.

Governor Manchin and the West Virginia Legislature gradually lowered the Sales and Use Tax on food from 6 percent in 2005 to 3 percent in 2008. According to the United States Bureau of Labor Statistics, the average American family of four spends $4,833.00 a year on groceries. By lowering the food tax from 6 percent to 3 percent, the average family will save $145 a year.

“The rate reduction benefits both families and in-state border businesses,” said State Tax Commissioner Christopher G. Morris. “By lowering the tax, we’ve leveled the playing field between West Virginia’s food tax and that of our neighboring states.”

The 3 percent tax rate applies to the sale, purchase and use of food and food ingredients intended for human consumption. Prepared food, which includes food sold in a heated state, along with food sold through vending machines and soft drinks do not qualify for this reduced rate and will continue to be taxed at the 6 percent rate.

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

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