OLYMPIA – A proposed statewide sales tax hike to fund healthcare and social service programs edged a step closer to the ballot today.
The House Health Care and Human Services Committee approved the tax referendum legislation on an 8-7 vote this morning.
The measure would ask voters in November to increase the sales tax by three-tenths of a penny, equal to 3 cents on each $10 of taxable purchases. It would be in effect for three years, from Jan. 1, 2010 through Dec. 31, 2012.
It is not known when, or if, the full House will be considering the measure.
Republicans strongly oppose it and several Democrats are also against it though some of them may agree to put it on the ballot to let voters decide its fate.
Close to a billion dollars could be raised from the sales tax increase. None of the money could be used to balance the state budget.
If it passed, the single largest portion would fund 40,000 slots in the Basic Health Plan, a state-subsidized medical care program for the poor.
Money also would go to hospitals, nursing homes, mental health providers and public health clinics.
It also offers a cash rebate for low-income families who receive the federal earned income tax credit. In 2010 and 2011 this rebate will be $25 or 5 percent of the amount of their federal credit, which ever is larger.
Up to 370,000 families could be eligible for the rebate.
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