Building on Success 2017 Pre-Legislative Conference

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1 Building on Success 2017 Pre-Legislative Conference January 9, 2017 Charleston Marriott Town Center

2 Roads, Transportation and Construction Mike Clowser Contractors Association of West Virginia Bryan Hoylman Associated Builders and Contractors of West Virginia West Virginia Business & Industry Council

3 Retail and Small Business Bridget Lambert West Virginia Retailers Association (also presenting for Oil Marketers & Grocers Association) Ruth Lemmon West Virginia Automobile and Truck Dealers Association Will Swann West Virginia Beverage Association West Virginia Business & Industry Council

4 Business Impact Presentation

5 Our Mission The West Virginia Retailers Association supports the collective goals of the retail industry, promoting the highest level of standards and best practices though education and advocacy before the general public, opinion leaders, and policy makers.

6 The West Virginia Retail Sector The retail sector provides more than 163,000 jobs in West Virginia and creates more than 6.3 million dollars in GDP. The retail industry is the 5 th largest producer of the WV GDP. The retail sector supports over 21,000 retail establishments 1 in 4 jobs in West Virginia are in the retail sector 40% of retail jobs are local small businesses Industry Employment GDP ($Million) 1) Mining 43,187 $9,674 2) Manufacturing 51,677 $7,162 3) Real estate, rental & leasing 4) Health care and social assistance 5) Retail trade (Including food services and drinking places) 26,870 $6, ,251 $6, ,610 $6,373 6) Wholesale trade 25,623 $3,261

7 Modern Retail In the new modern retail environment the shopping experience has never been quicker, easier, and more interactive How consumers use mobile in-store Millenials 44% 50% 46% 69% Gen X 44% 48% 46% 64% Boomers 29% 31% 27% 40% Silents 17% 25% 19% 17% 0% 10% 20% 30% 40% 50% 60% 70% 80% Scan a QR code to get more information Read Product review Check for a discount Request a price match Items most researched online before buying in-store 46% Electronics 23% Shoes 21% Home Improvement 16% Food and Groceries 27% Apparel 25% Appliances 15% Medicine & Supplements 17% Beauty Care & Cosmetics 13% Furniture and Home Décor

8 National Retail Snapshot Retail is the number one private sector employer in the U.S. (According to a new report commissioned with PWC) The retail industry supports 42 million jobs and generates $2.6 TRILLION on US GDP Retail pays $1.6 TRILLION in wages and benefits. Retail companies also support more than 253,000 software developers, and 176,000 in advertising, marketing, PR and sales management, and over 203,000 designers. A large percentage of ALL retail companies are small businesses employing fewer than 50 people.

9 West Virginia Retail Snapshot The retail industry is proud to have 21 retail companies on WorkForce West Virginia s list of the Top 100 employers across the state West Virginia consumers have access to multi-faceted retail shops on mainstreet, online, and in the Mall Retail stores promote economic development and growth through job creation and improvements to the state s infrastructure West Virginia Retailers Association (WVRA) pursues legislative change involving large scale business issues such as tort reform and tax reform Top retail issues today include organized retail theft, retail pharmacy issues, substance abuse, debt/collection, and minimum mark-up legislation WVRA addresses food industry standards on behalf of the state chain grocery stores West Virginia Retailers Association is proud to have members from Associated Collections Agencies of WV, the WV Jewelers Association, National Association of Chain Drug Stores, the newly expanded fireworks industry, and tobacco & electronic vapor retailers

10 OMEGA Most OMEGA members are home grown West Virginia businesses. They employ over 2.5 percent of the State's population - more than 50,000 residents. Employees of member companies blend the fuels, deliver the gasoline, stock the shelves and work the counters - all of which brings comfort and convenience to your life. OMEGA members collect a substantial amount of State revenue and taxes. In fact, more than 10 percent of all State taxes are generated through sales at OMEGA member businesses. In addition, OMEGA convenience and grocery stores collected $201 million for the West Virginia Lottery through Instant and Online Lottery sales. OMEGA members are not large out-of-state operations. We're hometown employers and entrepreneurs contributing to our communities. OMEGA members annually provide several college-bound West Virginians with financial scholarships. Members also give their money, time and energy to numerous community-service and non-profit organizations throughout the State. In fact, OMEGA members have contributed more than $2.3 million since 2003 to charities who help West Virginia's children, including Children's Miracle Network, YMCA After School Program, Make-A-Wish Foundation and Children's Home Society of West Virginia. Community resident, local employer, major taxpayer and civic volunteer OMEGA members play a vital role in our state. OMEGA members - over 225 strong - are working to provide life's essentials to West Virginia: fuel, food and convenience.

11 Differences in excise tax rates across jurisdictions create incentives for consumers to cross the border and purchase in lower tax-jurisdictions. There are certain commodities consumers shop price for, among those are gasoline, cigarettes, and beer. It is estimated that 50% of West Virginians live near a border. Being competitive on those borders is important to West Virginia. When consumers cross the border to shop they make other purchases. So not only does West Virginia lose the tax on the items mentioned above, but other purchases as well.

12 Gas Taxes Beer Taxes Per Case KY MD OH PA VA WV 0 KY MD OH PA VA WV Cigarette Taxes $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 $0.60 $2 $1.60 $2.60 $1.20 $0.30 KY MD OH PA VA WV 7% 6% 5% 4% 3% 2% 1% 0% Sales Tax 6% 6% 5.75% 6% 5.30% 6% KY MD OH PA VA WV

13 West Virginia Soft Drink Tax Despite no taxes on food, West Virginia is only one of two states, other than Arkansas with a special tax on soft drinks. In West Virginia the tax is one cent per 16.9 Oz or ½ liter. Thus on a case it is 24 cents we pay here that our surrounding states do not. 3% 3% 2% 2% 1% 1% 0% Food Taxes 2.50% 0% 0% 0 0 0% KY MD OH PA VA WV

14 WEST VIRGINIA AUTOMOBILE & TRUCK DEALERS ASSOCIATION Established 1933 The mission of the West Virginia Automobile & Truck Dealers Association is to encourage sound business policies, facilitate the exchange of ideas among our members, foster progressive legislation, discourage destructive, retrogressive legislation, cooperate with other motor vehicle trade associations, and promote confidence, respect, and good fellowship among all of those directly or indirectly engaged in the motor vehicle industry.

15 West Virginia Automobile and Truck Dealers Association WV International Auto Show Jan 27-29, 2017 Charleston Civic Center, Charleston, WV

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18 Automobile and Truck Dealers ARE INDEPENDENT BUSINESSES, NOT MANUFACTURER-OWNED STORES; THE VAST MAJORITY ARE LOCAL, FAMILY OWNED BUSINESSES THAT HAVE BEEN IN THEIR COMMUNITIES FOR GENERATIONS ALL AT EXPENSE OF THE DEALER. LAST OF THE GREAT ENTREPRENEUR. PERSONALLY INVEST MILLIONS OF DOLLARS IN LAND, FACILITIES, PARTS AND SERVICE, PEOPLE, EQUIPMENT TO SELL AND SERVICE VEHICLES, TAKE CARE OF CONSUMERS, COLLECT TAXES TO SUPPORT LOCAL COMMUNITIES AND FEDERAL, STATE AND LOCAL GOVERNMENTS. ALSO, SUPPORTS AND INVOLVED IN LOCAL CHARITIES, COMMUNITY EFFORTS, SCHOOLS AND OTHER BUSINESSES. GENERATE HUNDREDS OF MILLIONS OF DOLLARS IN TAX REVENUES FOR FEDERAL, STATE AND LOCAL GOVERNMENT AND PROVIDE OVER 19 PERCENT OF ALL RETAIL SPENDING IN THE US. PROVIDE GOOD PAYING JOBS WITH BENEFITS. PROVIDE LONG TERM CAREERS WHILE PROVIDING THE TRAINING NECESSARY TO ACHIEVE THOSE GOALS. CAREERS WITH IN DEALERSHIPS NOT ONLY ARE SERVICE AND SALES, BUT MANAGEMENT, ADMINISTRATIVE, FINANCE AND INSURANCE, PARTS, BODY SHOPS, IT POSITIONS, ADVERTISING, HUMAN RELATIONS AND OTHER MISCELLANEOUS POSITIONS. WEST VIRGINIA HAS 135 FRANCHISE DEALERSHIPS, PROVIDING ALMOST 6,418 DIRECT JOBS AND 6,035 INDIRECT JOBS WITH AN AVERAGE OF 44 EMPLOYEES PER DEALERSHIP.

19 Automobile and Truck Dealers DEALERSHIPS HAVE AND AVERAGE OF $277 MILLION IN PAYROLLS AND $5 BILLION IN SALES. THE AUTOMOBILE INDUSTRY IS ONE OF THE MOST POWERFUL AND CONSTANT INDUSTRIES IN THE WORLD. LOCAL DEALERSHIPS WORK ONE-ONE-ONE WITH THEIR CUSTOMERS WHEN A PROBLEM ARISES WITH THE MANUFACTURE (LEMON LAWS AND WARRANTY ISSUES). LOCAL DEALERSHIPS COLLECT AND REMIT ALL TAXES, REGISTRATION AND LICENSING FEES TO DMV AT NO COST TO STATE. ASSIST IN ARRANGING FINANCING FOR CONSUMERS AND IN MOST CASES SECURE A CHEAPER FINANCE RATE DUE TO THEIR BULK BUSINESSES WITH LENDERS. PROVIDING LARGE INVENTORIES OF ALL MAKES AND MODELS BY LOCAL DEALERS PROVIDE THE CONSUMER WITH THE ABILITY TO MAKE CHOICES THAT MEET THEIR NEEDS AND ABILITY TO PAY FOR THEIR VEHICLE OF THEIR CHOICE AND NEEDS. PRODUCES WEST VIRGINIA INTERNATIONAL AUTO SHOW. PROVIDING OPPORTUNITY FOR CONSUMER TO ENJOY AND SEE THE LATEST VEHICLES, BOTH PRE-PRODUCE AND LATEST VEHICLES AVAILABLE, IN A NON-SELLING ENVIRONMENT AND FAMILY FRIENDLY.

20 Retail Industry Representatives For further information regarding the retail industry and legislative matters contact: Bridget Lambert President West Virginia Retailers Association 2110 Kanawha Blvd., E Suite 220 Charleston, WV Phone: Fax: wvra@teays.net Janet Vineyard President WV Oil Marketers & Grocers Association 2006 Kanawha Blvd. E Charleston, WV Phone: Fax: Jan@omegawv.com Ruth Lemmon President West Virginia Automobile and Truck Dealers Association 1618 Kanawha Blvd E P.O. Box 2028 Charleston, WV Phone: Fax: (304) RLemmon@WVCAR.com

21 The West Virginia Beverage Association Leading the Way

22 Leading The Way on Job Creation Study Prepared by John Dunham & Associates, 2016.Based on 2015 data.

23 Leading The Way For Local Businesses Study Prepared by John Dunham & Associates, 2016.Based on 2015 data.

24 Leading The Way on Economic Impact Total Economic Activity Generated By West Virginia Beverage Industry: $1.1 Billion Study Prepared by John Dunham & Associates, 2016.Based on 2015 data.

25 Leading The Way By Giving Back Total contributions by beverage industry bottlers and distributors: $6.1 million Coca-Cola Donates Water To Flood Victims - WSAZ News Staff Jun 30, 2016 Charity feeding flood-hit children receives $5,000 from Coca-Cola - Fox 11 Staff Dec, 2016 Study Prepared by John Dunham & Associates, 2016.Based on 2015 data.

26 Out of Step Which Two States Impose an Excise Tax on Soft Drinks?

27 How We are Taxed Total excise taxes paid in West Virginia: $15,017,824 SOFT DRINK SYRUP CANNED/BOTTLED BEVERAGES DRY MIXES Source: West Virginia Code, CHAPTER 11. TAXATION. ARTICLE 19. SOFT DRINKS TAX.

28 Taxes We Paid Total taxes paid in West Virginia in 2015: $15,017,824 Tax Dollars Produces Product Taxed Dollars Produced Syrup $750,890 Dry Mix $150,178 Bottled $14,116,756 Source: West Virginia Department of Revenue, 2015 Annual Report Syrup Dry Mix Bottled

29 Beverage Taxes Do Not Decrease Obesity Source: Trust for America's Health and Robert Wood Johnson Foundation. The State of Obesity 2016 [PDF]. Washington, D.C.: 2016.

30 Soda Taxes Hurt Our Poorest and Most Vulnerable One Time to Listen to Bernie Sanders! The soda tax is a tax that targets the poor and the middle class while going easy on the wealthy. That approach is wrong for Philadelphia, and wrong for the country. -US SENATOR BERNIE SANDERS

31 Leading The Way For The Future Join the West Virginia Beverage Association in our fight to protect West Virginia paychecks, West Virginia consumers and West Virginia s West Virginia Beverage Association WVBeverage.com

32 Agriculture West Virginia Farm Bureau West Virginia Business & Industry Council

33 West Virginia Board of Public Works (incoming) Commissioner-elect Kent Leonhardt West Virginia Agriculture Commission Attorney General Patrick Morrisey West Virginia Attorney General s Office Mike Queen Deputy Chief of Staff for Secretary-elect of State Mac Warner Auditor-elect JB McCuskey West Virginia Auditor s Office

34 Thank You to Our Sponsors Gold Sponsor Silver Sponsors Bronze Sponsors West Virginia Business & Industry Council

35 Thank you! West Virginia Business & Industry Council Follow #wvbic West Virginia Business & Industry Council