News

Proposed drive-thru tax causes fumes

September 13, 2010

A new tax on food from drive-thru components was proposed on Monday by the West Virgina Division of Highways in an attempt to try to raise revenue for the depleting State Road Fund.

According to the Charleston Daily Mail, the tax would add an additional 5 percent tax on food purchased at drive-thrus. Food bought inside would continue to be taxed at the existing rate of 6 percent.

This proposed tax would increase the cost of an item from the McDonald’s Dollar Menu from $1.06 to $1.11.

The Division of Highways predicts the hike could raise $50 million a year. The proposal was presented to the Legislature’s Select Committee on Infrastructure and it’s unclear if the group will approve of what is being called the “cheeseburger tax.”

Highway division spokesman Brent Walker said with declining revenues and roads needing repair, the division is always looking for new sources of revenue.

The State Road Fund is the main source of revenue for financing and administering West Virginia’s highways.

The state's Division of Highways spends more than $1 billion a year to build, rehabilitate and maintain roads and bridges. About $650 million comes from the State Road Fund and $460 milllion comes from the federal government, however, federal dollars have diminished due to the stagnant federal gas tax. The gas tax has remained constant at 18.4 cents per gallon since 1993.