Tax & Accounting Blog

West Virginia May Increase Cigarette Tax; Lower Grocery Tax

Indirect Tax, Sales and Use Tax February 25, 2011

Legislation which could increase the tax on a pack of cigarettes is being reviewed in the West Virginia legislature. The state currently has one of the lowest cigarette taxes, at approximately $0.55. The amount of the cigarette tax hasn’t increased since 2003.

In addition to this pending legislation, West Virginia is eyeing a decrease in the sales tax on groceries. The tax is currently at 3 percent, but if the legislation was approved, that would be lowered to 2 percent. The House Finance Committee is still reviewing the legislation. If passed, this bill would decrease sales tax revenues by an estimated $26 million per year. This bill was introduced as part of Gov. Earl Ray Tomblin’s agenda. It has been implied that the intention is to eventually eliminate the sales tax on groceries.