House outlines tax proposal – press conference starting soon

This just in from the House:

The House proposal would generate about $758 million for the 2009-2011 biennium, primarily by ending certain tax exemptions and closing tax loopholes. Additional anticipated budget actions will generate about $100 million.

• Part One is an amended version of Hunter’s House Bill 3176 which closes about $385 million in tax loopholes and tax avoidance schemes. The funds will be used to maintain lower class-size in grades K-4, provide levy equalization around the state, and maintain financial aid for college students.
• Part Two increases the cigarette tax by $1 per pack of cigarettes and equalizes the tax on other tobacco products. The $111 million raised will help maintain the Basic Health Plan, Apple Health for Kids, and tobacco prevention programs.
• Part Three ends the sales tax exemption for products and services such as elective cosmetic surgery, candy and gum, custom software, janitorial services and bottled water. It generates about $163 million for public health, children’s dental care, children’s health, and services for the disabled.
• Part Four increases B&O rates by 0.5 percent for certain professional service providers such as lawyers and accountants. It also removes a B&O tax exemption on investment earnings beyond $250,000 for non-financial firms. It raises about $99 million for financial aid, levy equalization, and natural resources.
• Part Five includes other anticipated operating budget actions and raises $100 million for natural resources and public education.

Tags: House, tax