Mercer County Economic Development Authority

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Mercer County Economic Development
Authority 1500 W. Main Street Princeton, WV
24740
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Proposed - Food and Beverage Tax Referendum
Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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How is the tax imposed?

• Counties may levy up to 3 tax under proposed
  West Virginia Law.

To be voted on in public referendum during
regular election.
Approximately 60 Million in revenue annually for
West Virginia.
Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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What would the tax money be used for?

• A minimum of 40 of the collected tax shall be
  remitted by the County to the Countys Economic
  Development Authority for economic development
  purposes.
• 40 of any tax collected under the meal tax law
  from a restaurant located in a municipality shall
  be remitted by the county to the municipality in
  which the restaurant is located, to be expended
  in a manner which the municipalitys governing
  body deems appropriate. The remaining 60 will
  be used by the discretion of the County
  Commission, for projects they deem necessary.

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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To what kind of items would the tax apply?

• Prepared foods and beverages (ready to eat).
• NOT groceries.
• Includes alcoholic and non-alcoholic beverages
  served with a meal.

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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EXAMPLES

• A tax on the sale of prepared food and beverages
  at restaurants, lunchrooms, cafeterias, coffee
  shops, cafes, taverns, delis, push cart
  operations and hot dog stands.
• Grocery and convenience stores only collect the
  tax on ready to eat foods such as the deli or
  salad bar.
• Does not apply to vending machines.

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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What effect would the tax have on an average
resident?

• On a 5.00 fast food meal, tax would be 15
  cents.
• On a 50.00 meal at a nice restaurant, tax
  would be 1.50.

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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Other States charging food and beverage tax.
Connecticut 8 Rhode Island
8 Florida 5 Vermont
9 Kentucky 3 Virginia
5 Maine 5 North
Carolina 4 Massachusetts 5 New
Hampshire 8
Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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Who will pay the meals tax?

• Commuters, travelers and tourists who pass
  through West Virginia counties on a daily basis.
• County residents who choose to dine out.

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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Why You Should Support the tax now?

• Diversify Countys tax base by not relying on
  raising the real estate tax.
• Shift some of the burden to tourists, visitors
  and commuters.
• Declining state and federal revenues, increased
  mandates.
• Provide funding for economic development projects
  which will create new jobs and save existing
  jobs.

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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What is the difference between a general tax and
a use tax?

• If the County chose to gain additional revenue by
  increasing the real estate tax, this would apply
  to all landowning County residents, regardless of
  their ability to pay.
• If the County imposed a meals tax, it would apply
  to tourists, commuters and travelers, as well as
  residents who choose to dine out.

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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Exemptions

• Schools/Colleges/Universities.
• Vending Machines.
• Churches which serve meals.
• Fund-Raising Operations.
• Not-For-Profit Organizations.
• Day Care Centers.
• Places manufacturing packaged or canned foods
  which are distributed to grocery stores or
  similar food retailers for sale to the public.

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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Estimated Revenue per WV County Based on the
Implementation of a 3 Meal Tax

• SEE HAND-OUTS

Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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QUESTIONS/COMMENTS
Mercer County Economic Development Authority    
1500 W. Main St. Princeton, WV 24740
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Thank You.
Mercer County Economic Development
Authority 1500 W. Main Street Princeton, WV
24740