CHARLESTON, W.Va. – West
Virginia Gov. Jim Justice’s second budget swaps lower sales, gas and business
gross receipt taxes with higher tobacco taxes and a new sugared drink tax, the Charleston
Gazette-Mail reports. “Here’s what it has to be for me: Balance the budget,
but don’t cripple us,” he said. The state is currently experiencing a $500
million shortfall in its budget.
Justice’s “Better Health
Initiative for West Virginia” would place a penny-per-ounce tax on sugary soda,
which would generate an estimated $85 million. That tax wouldn’t apply to
sugar-free drinks and would be in addition to the penny soft drink tax that
funds the West Virginia University School of Medicine.
The initiative would also
increase the state’s cigarette excise tax by 50 cents per pack to $1.70 per
pack. West Virginia experienced a 55 cents per pack hike on cigarettes this
past July. Justice’s new budget also has bumps in wholesale liquor prices and
beer taxes.
Both the West Virginia
House and Senate have indicated a willingness to work with the governor on
coming to a budget decision soon. House and Senate leaders said that they are
“glad the governor has heard the concerns of our constituents with his initial
proposals and are heartened to know he is open to alternatives.”