Governor's Plan to Raise Revenue
Posted: 02.13.2009 at 4:19 PM

Liquor and Tobacco Could Bring in Millions

Photo

We told you earlier this week, the governor's budget does include a plan to bring in $230 million dollars in new revenue.

But where exactly is that money coming from?

The answer is this Fact Finder Report.

I spoke with Leslee Fritz with the State Budget Office. She says much of the new revenue would come closing a dozen tax loopholes, including taxes on commercial rental property and oil and gas income deductions.

The governor is also proposing increasing some tobacco taxes. Now this would not be cigarettes. Fritz says those taxes were raised a few years ago, but other tobacco products, like chewing tobacco, cigars and snuff would be affected. The governor wants to double the tax rate on those products from 32% to 64%, which she says would bring in $45 million dollars a year.

Another plan is to increase liquor license fees. Fritz says most of those fees haven't been raised in 30 years. The governor is proposing to double fees paid by retail liquor licenses. That move is projected to bring in $10.4 million dollars a year.

The governor is also proposing loosening some liquor laws to allow new permits and new fees.

For example, new permits to allow extended hours of service, those places could sell liquor until 4 a.m. And permits to allow retailers to sell liquor earlier on Sundays. Those two changes could bring in a combined $13.7 million dollars.

The governor is also proposing a "cybershame" plan to publicize names of people who owe more than $100,000 in taxes. She says this has the potential to bring in $5 million a year.

Read the proposed revenue enhancements here.

So what do you think about the governor's plans to bring in additional revenue?

Leave your comments below.