May 3, 1921 – West Virginia becomes the first state to legislate a broad sales tax
West Virginia has the distinction of being the first US state to enact a sales tax.[168] It currently stands at 6%. The sales tax on food currently stands at 1%. Effective January 1, 2006, the sales tax on food was lowered to 5%, and on July 1, 2007, it was lowered further to 4%. The sales tax on food was again lowered to 3% on July 1, 2008, to 2% on January 1, 2012, and then to 1% on July 1, 2012.[169] However, the reduced rate of tax does not apply to sales, purchases and uses by consumers of prepared food. Prescription drugs are not subject to sales tax. Credit is allowed for sales or use taxes paid to another state with respect to the purchase.
An individual who titles a motor vehicle with the West Virginia Division of Motor Vehicles must pay a $10 title fee and a 5 percent title privilege tax (rather than the 6 percent sales tax). For vehicles purchased new by West Virginia residents, the measure of this tax is the net sales price of the vehicle. For used vehicles, and for vehicles previously titled in other states, the tax is measured by the National Automobile Dealers Association book value of the vehicle at the time of registration. No credit is issued for any taxes paid to another state. Trailers, motorboats, all-terrain vehicles and snowmobiles are also subject to this tax.[170] As of June 7, 2007, new residents of West Virginia no longer have to pay the 5 percent title privilege tax on vehicles, as long as the vehicles were validly titled to the same owner outside the state.[171]
West Virginia is a member of the Streamlined Sales Tax Project. The streamlined sales tax agreement has effected significant in-state tax changes. West Virginia's Energy Star Sales Tax Free Holiday was inspired by similar holidays in other states. The reduction of the food tax was similarly influenced. West Virginia adopted the definition of food found in the Streamlined Sales Tax Agreement in deciding what food is subject to preferential tax rates.[172
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#West_Virginia