House Fails to Pass Senate’s Tax Increase Bill

On Tuesday, the House of Delegates took up the Senate’s bill (SB 1005) that would have increased the tax on cigarettes by 45-cents a pack, a revenue-generating measure to help balance the upcoming fiscal year’s budget. After much debate and discussion about whether or not to include other tobacco products, as well as whether or not to even increase the tax at all, the House voted 44-55 to defeat the bill.
This sent legislators back to the drawing board on figuring out how to solve the ongoing budget impasse.
Today both houses passed their own version of the state budget sending them to each other for consideration when they reconvene on Tuesday. The Senate version, SB 1002, helps close the current year’s (FY 2016) budget gap. The bill takes $32 million from the Rainy Day Fund and redirects $31 million from various funds to close the FY 2016 gap.
The House version, HB 101, contains $200 million in cuts and takes $143 million from the Rainy Day Fund, with no new revenues. Governor Tomblin would likely veto it if it passes both houses.
Both the Senate and House have adjourned for the holiday weekend. Tune into next week’s Budget Beat a recap of week #3 of the Special Session!