Spokane7
49°
February 12, 2010 in City
House bill seeks sales tax increase
1 cent hike would raise $1 billion yearly
OLYMPIA – A proposal to raise the state sales tax by 1 cent, and tie it to high levels of unemployment, was introduced Thursday in the state House of Representatives.
Rep. Timm Ormsby, D-Spokane and one of the House Bill 3183’s 15 co-sponsors, calls it “an interesting concept” while conceding the sales tax is “a terrible revenue source.”
“I’m not crazy about the sales tax. But it’s one of the very few options available to the state,” he said.
The bill would raise the state’s share of the sales tax by 1 penny per dollar starting June 30, with 80 percent of the estimated $1 billion in new revenue raised each year going to the state’s general fund, and most of the rest being set aside for roads and bridges. It would keep that extra penny per dollar in place until the state’s unemployment rate dropped to 6.5 percent for four straight months, when it would drop by a half cent. The other half-cent would come off after the unemployment rate dropped to 5 percent.
The state currently collects 6.5 cents per dollar, though the total rate paid by consumers is generally higher because of local-option increases imposed by cities and counties. Each penny increase in the state’s sales tax generates about $1 billion in revenue.
Minutes after the bill was introduced, the Washington Policy Center, a conservative organization, warned the sales tax could be in place for a long time. The state’s unemployment rate is 9.5 percent and a tax increase of this magnitude could cost the state thousands more jobs, said the center’s Jason Mercier.
Ormsby said the bill was introduced in the hope of getting a hearing in the House Ways and Means Committee and generating discussion: “I’ll be interested to see what kind of reaction is out there.”
There is no similar proposal in the Senate. Gov. Chris Gregoire has said she’d consider any options the Legislature sent her but has not called for a sales tax increase.
Romney/Paul split weighing on county GOP 
liarsinnews on February 12 at 6:32 a.m.
I don`t trust Gregoire any farther than I can throw the State Capitol Building.
Truthhurts on February 12 at 7:19 a.m.
Since the need for services leaps in a recession, while revenues drop dramatically (since purchases drop faster than income), this is probably the best solution for a bad situation.
gotcha on February 12 at 7:46 a.m.
Cut the size of your state goverment to accept the taxes that you have coming in…..I bet no one ever thought of that….The people that vote in higher taxes in times like these need to go….VOTE THESE INCUMBENTS OUT OF OFFICE.
lewis8457 on February 12 at 8:41 a.m.
their whole plan is to make government bigger. cutting back is not even in their thought patterns. after all they have our money to spend.
go head and raise the sales tax i never buy anything but food anyway.
they want to see spending stop go ahead raise the taxes and watch the stores empty out. I thought the plan was to get us suckers spending again.
My brother has been on unemployment for 2 years solid while his wife makes 100 grand a year. He makes more on unemployment then i do working. do a means report on the income of all unemployment benefits people. Before you raise my taxes.
MrNatural on February 12 at 9:22 a.m.
Good idea for a good cause. Washington has always been progressive in maintaining a better standard of living. I’m glad there are elected officials that take the tough initiative to keep it that way. I know this is unpopular with some but this is what it takes to maintain quality infrastructure, public health and safety and help the vulnerable.
bvotava on February 17 at 1:03 p.m.
How about the government living within their budget for a change? A “free license to spend” has been the motto for too long and with the current administration, it has gone into a free-wheeling spiral. Private citizens are asked to learn to live within our budgets but obviously it does not apply to our government officials. They just don’t get it; or are they just trying to live out a legacy for themselves. Hard to figure.