Mercer County Economic Development Authority 1500 W. Main Street Princeton, WV 24740 - PowerPoint PPT Presentation

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Mercer County Economic Development Authority 1500 W. Main Street Princeton, WV 24740 PowerPoint Presentation
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Mercer County Economic Development Authority 1500 W. Main Street Princeton, WV 24740
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Mercer County Economic Development Authority 1500 W. Main Street Princeton, WV 24740

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

  2. Proposed - Food and Beverage Tax Referendum: Mercer County Economic Development Authority     1500 W. Main St. Princeton, WV 24740

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

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

  15. Thank You. Mercer County Economic Development Authority 1500 W. Main Street Princeton, WV 24740