Legislative Tracker

After six days of special legislative session, majority Democrats fail to finalize final operating budget and tax increase proposals

“House Democrats signaled that they want to raise taxes by $800 million on families, individuals and small businesses across our state. This approach, which represents the largest tax increase in state history, basically says that the needs of state government are more important than those who are struggling in these tough economic times.
“Our state should raise revenue through creating economic activity and jobs — not raising taxes. The 2010 legislative session should have been about jobs and  restructuring state government in meaningful ways. Unfortunately, this did not happen. When Democrats decided to suspend the Taxpayer Protection Act, I-960, all hopes for significant reforms for our business climate and state government died.
“As Democrats meet behind closed doors and continue their in-fighting, I will continue to advocate for the alternatives to tax increases. These solutions include  prioritizing state government, reforming our budget process and helping our employers create jobs through regulatory relief and health care reform.”
Senate Bill 6143 passed the House on a 53-42 vote March 20, with no Republican voting in favor of it and five Democrats also voting “no.” A breakdown of the House Democrats’ 16 new or increased taxes are below:

House Democrat Tax Increase Package Senate Bill 6143

2009-11

• $201 million – Increasing business and occupation (B&O) tax on services from 1.5 percent to 1.75 percent until 2013.
• Includes: accounting; tax preparation; bookkeeping; payroll services; advertising and related services such as public relations services, direct mail advertising services, and display advertising services; agent and management services for artists, athletes, entertainers, and other public figures; legal services; management, scientific, and technical consulting services; marketing research and public opinion polling services; and promoting services for the performing arts, sporting, and similar events.
• $154.7 million – Increasing taxes on direct sellers
• $108.6 million – Increasing cigarette and other tobacco taxes
• $84.3 million – Increasing taxes on employers through new economic Nexus standards
• $76.5 million – Imposing sales tax on custom software
• $50.7 million – Increasing taxes on home mortgages and community banks
• $41.5 million – Increasing taxes on nonresidents
• $38 million – Imposing sales tax on bottled water
• $11.6 million – Creating a “guilty until proven innocent” standard for business activities
• $10 million – Increasing convention center hotel-motel tax in Seattle
• $8.3 million – Increasing B&O taxes on property management salaries
• $4.8 million – Increasing B&O taxes on canned meat and fruit/vegetable products
• $4 million – Increasing taxes on airplanes
• $2.1 million – Imposing B&O tax on corporate board of director fees
• $1.6 million – Increasing taxes on livestock nutrient management (manure cleanup)
• $1 million – Making corporate officers personally liable for tax debts
• $798.7 million – Total general fund tax revenue

Rep. Barbara Bailey represents the 10th District.