This afternoon the House released their proposed 2010 supplemental revenue package.

The House’s revenue package generates $758 million in new revenue for the remainder of the 2009-11 biennium and anticipates another $100 million to be generated from anticipated budget actions this session.

The House’s package resembles both the Governor and Senate’s proposed package. All three include closing tax loophooles and increases in sin taxes and both the House and Senate include savings from legislation to be enacted this session.

The largest difference among the revenue packages proposed is either the presence or absence of a sales tax. The Senate revenue package is the only one that includes a temporary increase in the sales tax.

Highlights of the House’s revenue package are below.

Highlights of Revenue Package

• Narrows or eliminates numerous current tax preferences or “tax loopholes” ($385.31 million).
• Removes sales tax exemptions for bottled water, elective cosmetic surgery, candy & gum, custom software, and janitorial services ($163.2million).
• The cigarette tax is increased by $1 per package and taxes on other tobacco products are equalized ($111.6 million)
• Increases taxes by 0.5% on lawyers, accountants, agends, marketing and management consultants ($21.7 million).
• Repeals exemptions on investment earlings for nonfinancial firms ($58 million).
• Implements savings from the Convention Center Tax Recovery (HB 3027) ($10.1 million)
• Limits exemption to the wind M&E ($7.8 million)
• Restores the PUD privilege tax to original legislative intent ($1.2 million).
• Implements SB 6409 ($30 million)
• Transfers funds from the captal budget ($70 million).

Details on the House’s proposed revenue package can be found on the House Democratic Caucus website.  

A public hearing on the revenue package (HB 3191) is scheduled for tomorrow, March 2, at 9:00 a.m. before the House Finance Committee.