This afternoon Governor Gregorie, in a letter to members of the Washington Legislature, asked policymakers to close tax loopholes and raise “sin” taxes to generate $605 million in additional state revenues for the current biennium.

Gregoire’s plan reaches the $605 million mark by increasing taxes on products including refined oil, bottled-water, carbonated beverages, cigarettes, candy and gum.

The largest of the increases applies to toxic and hazardous materials which would triple the current toxics tax from 0.7 percent to 2 percent, raising $148 million for general fund programs in the next year and $67 million for city and county storm-water projects around the state. In addition, the following increases were also proposed:

•  A bottled water tax levied at 1 cent per ounce at wholesale, raising $134.7 million in the next year.
• A carbonated beverages tax levied at 5 cents per 12 ounces that raises $93.6 million in the first year.
• A$1 per pack in cigarette taxes, raising the state levy to $3.025 per pack and raising $88.8 million in revenue in the first year.
• A sales tax on candy and gum would raise $28 million.

In addition to raising taxes on specific products, Gregoire supports moves to close tax loopholes. Specifically, she cited closing tax loopholes that favor out-of-state businesses, raising $73 million; eliminating a business tax break for gold bullion dealers; and repeal ing a tax credit for syrup taxes.