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

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Mercer County Economic Development Authority

1500 W. Main Street

Princeton, WV 24740


Proposed food and beverage tax referendum
Proposed - Food and Beverage Tax Referendum:

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


How is the tax imposed
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


What would the tax money be used for
What would the tax money be used for?

  • A minimum of 40% of the collected tax shall be remitted by the County to the County’s 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 municipality’s 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


To what kind of items would the tax apply
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


Examples
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


What effect would the tax have on an average resident
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


Other states charging food and beverage tax
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


Who will pay the meals tax
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


Why you should support the tax now
Why You Should Support the tax now?

  • Diversify County’s 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


What is the difference between a general tax and a use tax
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


Exemptions
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


Estimated revenue per wv county based on the implementation of a 3 meal tax
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


Questions comments
QUESTIONS/COMMENTS of a 3% Meal Tax

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


Thank you
Thank You. of a 3% Meal Tax

Mercer County Economic Development Authority

1500 W. Main Street

Princeton, WV 24740


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