Wash. Senate wants higher beer tax to fix budget

OLYMPIA, Wash. (AP) — Some Democratic state lawmakers want to raise taxes on beer to help solve the state’s budget woes.

That’s the highlight of a new tax proposal from the Senate, which has been negotiating a state tax package with the House and Gov. Chris Gregoire.

The newest Senate idea would increase state taxes by 50 cents per gallon on mass-market beers. Microbrews would be exempt.

It also would extend the sales tax to candy, gum and bottled water, and raise the state sales tax by one-tenth of a penny.

That would raise about $200 million — the final disputed piece of a roughly $800 million tax package that Democratic leaders want to help patch the state budget.

Lawmakers are in a special session to bridge a $2.8 billion budget deficit through June 2011.