Senate tweaks tax package, dropping car trades

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By Associated Press

Story Published: Mar 5, 2010 at 9:02 PM PDT

OLYMPIA, Wash. (AP) - The state Senate has made some changes to its plan for raising taxes.

The Senate's $890 million plan is still centered on a temporary three-tenths-of-a-cent sales tax increase. That's worth about $313 million, and includes a rebate for lower-income people.

It also increases taxes on several kinds of service businesses for three years, raising about $170 million. Another $30 million would come from charging sales tax on bottled water, and some $86 million comes from an extra $1-per-pack cigarette tax.

But the updated version unveiled Friday would drop some previous ideas, including sales tax on the value of trade-in cars. The Senate Ways and Means Committee approved the measures Friday night and they could be brought to the Senate floor as early as Saturday.

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