OLYMPIA — Democratic leaders in the House and Senate last night reached a final agreement on the details of a nearly $500 million revenue package that includes hundreds of millions of dollars in new taxes.
But leaders in the House's Republican minority stepped up their demands for a no-new-tax budget, threatening to withhold support for a proposed $8 billion transportation package that passed the Senate a day earlier.
The Democrats' tax package includes a 60-cent-per-pack cigarette-tax increase and a $1.33-per-liter increase in the tax on liquor sold at state-run liquor stores. They are included in a $263 million omnibus — Republicans were calling it "ominous" — bill the House was expected to vote on late last night.
The House also was expected to take up a separate bill that would raise nearly $139 million by reinstating Washington's estate tax on the wealthy, which the state Supreme Court struck down earlier this year.
The new taxes are part of a $26 billion, two-year state operating budget that lawmakers are expected to approve this weekend. The 15-week session must end by Sunday night.
The Democratic majorities in the House and Senate plan to push the operating-budget taxes through on their own. But they have insisted on getting help from the Republicans in passing a compromise transportation plan that would raise gas taxes by 9.5 cents over four years.
But House Republican leaders indicated yesterday that they would not support the gas taxes unless the Democrats ditch their operating-budget taxes.
"If they want a bipartisan transportation package, we want a bipartisan operating budget," said Rep. Doug Erickson, R-Bellingham.
The Senate approved the transportation package Wednesday on a bipartisan vote. It would raise the gas tax by 3 cents a gallon the first year, 3 cents the second, 2 cents the third and 1.5 cents in the fourth. It includes $2 billion for the Alaskan Way Viaduct.
House Transportation Chairman Ed Murray, D-Seattle, yesterday said he doesn't think the House Republican threats will derail the transportation tax package.
Murray said he's still negotiating a deal with GOP members and hopes to bring it to a vote today.
Democratic leaders said they don't think House Republicans will want to bear the blame for killing a roads package that business and labor overwhelmingly support.
"They have to know, we will call their bluff," said House Majority Leader Lynn Kessler, D-Hoquiam.
In the operating budget, the Democrats shied away from any broad increases to the state sales, business or property taxes. Instead, they opted for an assortment of targeted "sin" taxes and restoring the estate tax.
Seattle Times staff reporter Andrew Garber contributed to this report.
Ralph Thomas: 360-943-9882