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We do know that our highways cannot be funded by fuel taxes alone. We would like to caution you when considering an increase in the gasoline tax.  As you know, West Virginia is a state where approximately 50 percent of our residents live near a border. Therefore, being competitive on those borders is important to West Virginia retailers.  There are certain commodities that consumers shop price for and among those is gasoline.  With the way that our price is advertised, with a large price sign in the corner of every lot, our price is highly visible, which means we are highly competitive or uncompetitive by our price alone.

We have enclosed a sheet from our brochure that outlines our border stability issue and includes the taxes on gasoline for our bordering states.  Our tax on gasoline is higher than ALL of our surrounding states.  Virginia just lowered their tax on gasoline and now they are 23.59 cents lower in price on taxes alone.  West Virginia has no finished product pipelines for gasoline and our surrounding states do have them.  Our product must be transported by truck, which gives us a competitive disadvantage on transportation too.  With our smaller population, our volume of sales is lower, resulting in many stations having to increase their price to cover fixed costs.  As you can see, we cannot stay in business if we are disadvantaged further.

When residents go out of state to purchase their gasoline they also purchase other products and eat out and take advantage of entertainment, so West Virginia loses sales tax on those items as well.

We appreciate your consideration to our business.  We employ over 2.5 percent of the state’s population – more than 50,000 residents.  
Sincerely,
Jim Oppe, OMEGA Chairman

We would like to encourage you to also send a letter to the Commission. You need to let your voice be heard.  Letters can be sent to:
West Virginia Blue Ribbon Commission
C/O: Rahall Transportation Institute
P.O. Box 5425
Huntington, WV 25703

Also, if you have not taken the survey regarding highway funding, please do so today. Visit http://www.wvbrc.com/ to take the survey.  Surveys must be completed prior to close of business on August 25, 2013.

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