OLYMPIA – House Democrats used their majority Friday to push through a bill jacking up taxes on cigarettes, cigars and other tobacco products.
It now goes to the Senate which, during the regular session, approved its own legislation raising the cigarette tax. However, senators did not consider boosting taxes on other tobacco products.
On a 54-42 vote, the House approved an assortment of increases that will generate an estimated $108 million for the state’s cash-starved budget in the next 16 months.
Most of the money – roughly $89 million — will come from boosting the cigarette tax by $1 per pack. Beginning April 1, smokers will be paying a tax of $3.025 per pack of 20 cigarettes.
For tobacco products the tax is increased from 75 percent to 95 percent of the taxable sales price starting July 1. For large cigars, the tax rate will be 95 percent of the taxable sales price up to a maximum of 65 cents per cigar.
Revenue from the cigarette tax is the least controversial part of efforts by the House and Senate to raise roughly $800 million for education, health care and human service programs facing a loss of funding due to a $2.8 billion deficit.
Friday night’s vote came hours after the Senate narrowly approved a revised tax package containing the session’s most contentious issue – a higher sales tax.
Senate Democrats count on collecting $223 million from an increase of two-tenths of a penny but their House counterparts have so far opposed boosting the sales tax at all.
On Saturday, it is anticipated the House will try to pass a new tax package of its own.
Reporter Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com.
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