September 1, 2005
The Honorable Joe Manchin
Building 1, Capitol Complex
Charleston, WV 25305
Dear Governor Manchin:
Please add legislation to repeal the automatic increase in the wholesale tax on gas to your Special Session call. This automatic increase in the wholesale tax on gas will go into effect January 1, 2006. We need to act now in the upcoming Special Session.
Current high prices in gasoline are putting a strain on family budgets. I acknowledge that our state government is limited in impacting the oil markets, but we can prevent the significant increase in the gas tax that West Virginia will automatically impose on residents next year.
With the current WV excise tax on gasoline and diesel at 20.5 cents and wholesale gas tax at 6.5 cents, West Virginians already pay more at the gas pump in taxes than in most surrounding states. We will likely pay the highest taxes in the area next year after the recalculation of the wholesale gas tax. This tax is variable and calculated as 5% on the average wholesale price of gasoline per gallon between July 1 and October 31 of the preceding year.
If today's average wholesale price of $2.35 was the average, then the wholesale gas tax would be at least 11.75 cents per gallon. That is almost double what consumers are now paying for that tax at the pump. This tax is also applied to home heating oil and kerosine.
To prevent families from bearing the extra burden next year of a likely 5-8 cent tax increase per gallon on gas, please put this issue on your Special Session call so it can be dealt with before there is no graceful way to take action. You are in control of the upcoming agenda, I can not introduce this legislation.
This is not a long term solution. America is too dependent upon foreign sources of energy. This is a threat to our economy and national security.
Thank you for your consideration.
Sincerely,
Cindy Frich
WV House of Delegates
599-1309
(Cell) 276-2245