Washington Tax Package Hits Bottled Water, Soda, Beer and Candy

Governor Gregoire calls the taxes 'sensible and modest' and argues that they would help generate roughly $780 million annually for the state.

April 27, 2010

OLYMPIA, WA - Washington Governor Chris Gregoire approved a tax package last week that targets, among other things, soda, bottled water, major-brand beer, candy and cigarettes, the Los Angeles Times reports.

Gregoire said that the "sensible and modest" package would help solve the state??s budget deficit ?" currently estimated at $2.8 billion ?" and generate roughly $780 million annually.

Taxes on soda, beer and bottled water are temporary and will last through June 2013. The tobacco taxes take effect May 1, while the others kick in on staggered dates later this year.

"I believe in the people of the state of Washington. I'm asking them to stand up and do what's right on a temporary basis to see us through this worst time," Gregoire said.

Republican lawmakers blasted the Democratic governor??s move, arguing that the Democrats did not trim enough from state spending.

"Legislators must learn from history ?" you cannot tax and spend your way out of a recession, but you can dig the hole deeper with bad policies," said Sen. Janea Holmquist.

Specifics of the tax increases include:

  • Tobacco: $1 per pack increase.
  • Soda bottlers: 2 cents increase for every 12-ounce container (exempts bottlers under $10 million in volume).
  • Beer: 50 cents increase per gallon, or 28-cents per six-pack (exempts microwbrews).
  • Candy and gum: now subject to the state??s 6.5 percent sales tax.
  • Bottled water: now subject to the state??s 6.5 percent sales tax.
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