Senate Bill 516

The legislature is beginning to consider revenue enhancements to stop the cutting for schools.  Senate Bill 516 would increase the state sales tax by 1%.  Here is a summary of the bill and its status.

SB 516 would increase the statewide sales tax rate by one-percent, taking it from 5.3 percent to 6.3 percent, and decreasing it to 5.5 percent after three years. This is part of a revenue package proposed by the governor at the beginning of the session, which he recommended to bridge the FY 2011 budget shortfall and provide a modest BSAPP of $50 for K-12 education.
Seaman USD 345 Superintendent Mike Mathes presented direct and compelling testimony to the Senate Assessment and Taxation Committee hearing the bill. He outlined the efficiencies and budget-cutting measures enacted in his district, noting most districts were acting similarly, but said meetings with district patrons have made it clear that they’re calling on the Legislature to make no more cuts. Special thanks to Mike for his willingness to stand before both this committee and the House Taxation Committee, earlier in the year, and call for the legislature to provide adequate revenue, so budgets wouldn’t have to be cut even more in the next school year.

Status: The Senate Assessment and Taxation Committee acted earlier in the week to remove the cigarette and tobacco tax portion out of this bill and put it into a separate bill, HB 2388.

I think it is a very fair way to raise revenue.  What are your thoughts?