Lawmakers likely to ask voters for sales-tax increase

OLYMPIA — House Speaker Frank Chopp on Thursday said there's better than a "50-50" chance lawmakers will ask voters to increase the sales tax to help backfill proposed cuts to state health programs.

Senate Majority Leader Lisa Brown has been talking at news conferences and on her Web page recently about a ballot measure that would increase the state sales tax by three-tenths of a penny, or 0.3 percent, to help offset budget cuts.

The Legislature is writing a state budget with nearly $4 billion in spending cuts that affect everything from state corrections and public schools to health care for the poor.

The state sales tax is currently 6.5 percent. In King County, it's 9.5 percent for most purchases, and 10 percent in restaurants and bars.

Last week, a 0.5 percent sales-tax increase went into effect in much of King, Pierce and Snohomish counties to pay for expansion of Sound Transit light rail, express-bus service and commuter trains.

A temporary sales-tax increase "has numerous positive attributes to it. It's targeted, it's a fairly modest amount in the grand scheme of things, but it goes for some incredibly important core services, for hospitals, public health and nursing homes," Chopp said.

"I think that it will be well-received by people and be seen as a very logical response to the economic recession we're in," he said.

The Legislature's proposed budgets would cut about $250 million over the next two years by reducing enrollment in the Basic Health Plan, which provides subsidized health insurance for the working poor. Among other things, budget proposals also would end state payments for certain vaccines and reduce the rates hospitals are paid to care for people without sufficient private insurance.

The state Department of Revenue estimates that a 0.3 percent increase in the state sales tax could raise about $644 million during the next two-year budget cycle.

"There's real concern over the massive cuts in health and human services in our budget," Chopp said. "I care deeply for those programs."

He said that for now, it doesn't look like funding for public schools would be included in a tax measure. "There doesn't appear to be a strong consensus in the education field," he said.

Brown on Thursday would not say if the sales-tax idea is gaining momentum in the Senate. The Senate is still looking at a sales-tax proposal, Brown said, and she remains interested in possibly pursuing an income tax aimed at the wealthy. Nothing has been decided, she said. An income tax also would have to decided on by voters.

Chopp did not seem enthusiastic about an income tax, saying "lots of questions are being raised about that."

Gov. Chris Gregoire has said she opposes an income tax.

A decision on the tax proposals is expected within the next couple of weeks. However, the Legislature is running out of time. The last day of the regular session is on April 26.

The Associated Press contributed to this story.

Andrew Garber: 360-236-8266 or agarber@seattletimes.com