This article was originally posted yesterday.



The state Senate offered up a new proposal to the House this weekend in the ongoing revenue package standoff.

The basic standoff: The House doesn't want a sales tax increase; the Senate, which initially proposed a 0.3 percent increase for $312 million, does.

The Senate's latest offer includes a 0.1 percent sales tax increase, which would raise about $100 million. (They had been at 0.2 compromise last week, which would have raised about $200 million.)

Ironically, they have agreed to a $30 million tax on candy and gum, which the House initially pushed but dropped last week as a peace offering to the Senate. (The Senate had opposed the gum and candy tax all session.)

And as we reported on Friday, there's a new tax—a beer tax. The tax is at 50 cents a gallon, raising $57.8 million.



Beer industry lobbyists told us on Friday that they would not object to a tax if the money was targeted at alcohol treatment programs. The Senate says the near-$60 million in revenue has not been earmarked for anything specific yet.

The Senate's total revenue package comes in at about $800 million, which is where they've been (down from $900 million) since the special session began. The House is at about $800 million too, but they rely more on a longer list of B&O taxes and killing some exemptions—like a $50 million exemption for big banks and a $41.5 million sales tax exemption for out-of-state shoppers.