OLYMPIA — Senate Democrats have a bill in the wings that would let lawmakers raise taxes with a majority vote instead of the two-thirds vote now required.

The bill would overturn part of Initiative 601, the anti-tax measure approved by Washington voters in 1993, and effectively make it possible for Democratic majorities in the state House and Senate to raise taxes without Republicans going along.

The proposal comes in a year when lawmakers are facing a budget shortfall projected at more than $2 billion. Tax increases on everything from card rooms to cigarettes are being considered by the Legislature.

Senate Majority Leader Lisa Brown, D-Spokane, said she's not sure when the measure, Senate Bill 6078, will come up for a vote, but that she's confident it can pass the Senate. "We just think that's good public policy," she said. The bill passed the Senate Ways and Means Committee earlier this month.

Senate Republican Minority Leader Bill Finkbeiner, R-Kirkland, contends that Democrats are paving the way for tax increases.

"They've decided they're going to raise taxes and they can only get 50 percent to do it," he said. "They've decided they're not going to work with us. They want to make sure they don't need two-thirds for any votes."

The state Senate, House and Gov. Christine Gregoire are expected to release their budget plans within the next couple of weeks. All sides have been quiet about tax proposals, although key lawmakers yesterday said they expect efforts to reinstate a state estate tax.

SB 6078 would make other substantial changes to I-601 requirements, which were aimed at limiting government spending.

One of the most significant provisions, which would take effect in two years, would let state spending grow at a faster rate than envisioned under the initiative.

I-601 limited the annual growth in state spending to the average rate of increase in the state population and inflation during the past three years. The Senate bill would base spending on 90 percent of state personal income growth, which would allow state spending to grow about 1 percent faster than it can now.

When talking about a two-year budget that's in the billions of dollars, 1 percent represents a lot of money. In this case, several hundred million dollars.

"That would, for all intents and purposes, just totally remove the limit placed on spending in this state," Finkbeiner said.

House Majority Leader Lynn Kessler, D-Hoquiam, said that her caucus hasn't discussed changing I-601's provisions, but that she expected the issue to come up.

One tax measure likely to emerge is a reinstatement of the estate tax. The state Supreme Court last month abolished an estate tax collected by the state, wiping out an estimated $431 million that lawmakers had been counting on.

In interviews yesterday, House Finance Committee chairman Jim McIntire, D-Seattle, and Senate Ways and Means chairwoman Margarita Prentice, D-Renton, said an estate tax would likely be part of budget proposals.

State officials project Washington owes about $152 million in tax refunds because of the estate-tax ruling, and will lose an additional $279 million in projected revenue through the next two years.

Washington residents used to pay two taxes when someone died, one to the state and the other to the federal government. Voters repealed the state inheritance tax by initiative in 1981. However, the federal government allowed the state to keep a portion of the federal estate tax paid by Washington residents.

In 2001, Congress passed, and President Bush signed, legislation phasing out the federal estate tax, but Washington continued collecting its portion. The state Supreme Court ruled that levy unconstitutional, but that doesn't prevent the Legislature from passing a new state estate tax.

Lawmakers are talking about adjusting the tax so that it would only affect wealthier people in the state. Under the old law, estates valued at $1.5 million or more had to pay a tax.

There's also talk of exempting family farms from such a tax.

Andrew Garber: 360-943-9882 or agarber@seattletimes.com