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February 19, 2010 at 3:49 PM

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Legislators to hold town halls this weekend before unveiling tax packages

Posted by Jim Brunner

Next week is a big one for the Legislature as Democrats in the House and Senate are expected to finally unveil their budget proposals.

Lawmakers already have said they'll raise taxes as part of the plan to close a $2.8 billion budget gap.

The big question is whether they'll go for a general sales-tax increase, or stick to a menu of smaller taxes.

Gov. Chris Gregoire this week came out in favor of raising $605 million (over the next year) through an assortment of taxes on specific products and industries, such as oil, candy, bottled water and out-of-state banks.

But some Democrats believe a simpler and better approach would be a temporary increase in the state sales tax.

House Majority Leader Lynn Kessler, D-Hoquiam, said many lawmakers may have trouble voting for several of the specific taxes proposed by the governor.

For example, Kessler said she personally is skeptical of the fairness of a proposal to triple the state's "hazardous substance" tax, raising more than $200 million a year.That plan, a top priority for environmentalists, cleared the House Capital Budget Committee on Thursday.

Most of the money would be used to plug the state budget hole over the first few years, but stormwater cleanup would ostensibly get an increasing share in the future.

Kessler said she doubts the Legislature could be trusted to keep its hands off the money for other needs. A sales tax, she said, would be more fair than targeting a single industry.

Sixteen House Democrats have signed on to a bill to raise the sales tax by 1 cent, raising more than $1 billion a year in new taxes. The tax would decrease if the state's unemployment rate drops, and would go away if the unemployment rate falls to 5 percent for four straight months.

But other key Democrats still believe a narrower menu of specific taxes -- similar to what Gregoire proposed -- could raise just as much money without greatly affecting most taxpayers.

House Speaker Frank Chopp, D-Seattle, and House Finance Committee Chairman Ross Hunter, D-Medina, have said they prefer that route.

On the Senate side, Sen. Ed Murray, D-Seattle, says Democrats will meet Monday to hash out their revenue proposal, which also could include a sales tax, or a menu of other options.

Murray said he's "agnostic" on the question himself, he just wants a tax package large enough to protect state services.

Republicans, of course, oppose almost all of the tax ideas, but they can't do much to block them as they are greatly outnumbered in the House and Senate.

Many legislators are holding town halls this weekend, to hear from constituents before the budget plans are released. Groups ranging from Tea Party activists to unions are already organizing to make sure they're heard.

For a list of the town hall meetings in your area, check out this excellent list and map created by TVW's Niki Reading.

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Contributors

Jim Brunner
Covers politics.

Keith Ervin
Covers the Eastside.

Andrew Garber
Covers politics and state government from Olympia.

Emily Heffter
Covers local government.

Mike Lindblom
Covers transportation.

Kyung Song
Covers politics and regional issues from Washington, D.C.

Lynn Thompson
Covers Seattle City Hall.

Bob Young
Covers King County and urban affairs.