Gas Tax In, Pop Tax Out

The Legislature marked the state Soft Drink Association's visit to the Capitol on Tuesday with a bill from Gov. Joe Manchin to repeal the venerable pop tax over 14 years.

As The Associated Press reports, Manchin (and the industry) believe soft drinks are being unfairly taxed twice. Lawmakers set a 6 percent sales tax on soda (at Manchin's request) during last year's special session on taxation.

The pop tax dates back to 1951, when the state needed money to build WVU's medical school. The tax provided $14.9 million to to the school last year (5 percent of overall revenues, but about half the state's share of its funding).

I also note that the House on Tuesday sent the Senate a bill to renew the nickel-a-gallon portion of the gas tax set to expire in August. The bill has been amended to send part of its revenue into a separate fund which only the Legislature can tap.

This new account is earmarked for state roads ineligible for federal funding, but the administration is questioning this change to the bill.