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W.Va. Marks Start of 2012 with $56M in Tax Cuts

Posted: 4:02 PM Jan 2, 2012

West Virginia consumers and businesses can expect to save a combined $56 million in state taxes this year, thanks to several new rate cuts.

The sales tax on groceries dropped from 3 cents per dollar spent to 2 cents on Jan. 1. State officials say that will benefit consumers while costing the state $26 million during the year.

News Year's Day also triggered slight cuts to taxes on corporate net incomes and business net equity. Officials estimate those 2012 savings at $15 million each.

All three taxes are scheduled for future cuts. But at least one West Virginia tax increased Jan. 1.

Part of the state's motor fuel tax depends on wholesale prices. Recent average prices mean that component has risen by 1.2 cents per gallon of gasoline or diesel.