Bluefield Daily Telegraph
April 28, 2008 05:50 pm
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West Virginians can look forward to some relief on their weekly grocery bills when the state lowers its sales tax on food by another percentage point on July 1.
This year the food tax will drop to 3 percent from 4 percent. And, in light of rising food and fuel costs, this may mark the most welcome relief yet.
West Virginia began rolling back the food tax three years ago when the rate was at 6 percent. At that time, some wanted to eliminate the entire tax immediately — a popular, yet fiscally unwise move.
When lobbying for the food tax rollback in 2005, Gov. Joe Manchin told the Daily Telegraph the “everybody will love me” approach is easy, but asked, “How are you going to fix the road? Whose program is going to be cut?”
We had to agree.
“It (food tax elimination) won’t be done overnight, but it will be done as we can afford it,” Manchin said then.
Now, this has proven to be a sound idea.
Each year, the food tax has been cut by one cent on one dollar. This summer, the initial tax will be trimmed by half — a long way from those 6 percent days.
“The gradual phase-down of the Sales and Use Tax on food provides a savings of at least $75 million to all West Virginians,” according to state tax Commissioner Christopher G. Morris.
The drop in July will also bring the Mountain State ever-closer to the 2.5 percent food tax in neighboring Virginia. When only one-half percentage point separates the two in a few short months, the playing field will be much more level for grocery retailers on both sides of the state line.
In 2005, Manchin also told the Daily Telegraph it was his intention to “eliminate the food tax” within his term of office. But, he emphasized, the state had to be fiscally responsible and reduce debt while offering relief to residents when possible.
Little did we know then how vitally important this relief would be just a few short years down the road.
The increasing cost of gasoline and food prices in recent months has left many families struggling to fund their weekly household expenses. While some have always struggled to make ends meet, many more families are now budgeting their finances to the last penny.
It’s a sad and somewhat scary state of affairs.
We do not know what the national economy will bring in the coming weeks and months. But we do know the additional 1 percent cut on the food tax will be welcome news to those across the region and the state.
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