When I wrote yesterday about the Appropriations Chair's supplemental budget proposal, the tax increases included in the proposal had not been identified. More details are available now. The increases will be considered as HB 2996. The bill would increase revenues in 2015-17 by $119.5 million.

According to the House Democrats, six tax preferences would be repealed or modified. The proposal would:

• Apply the real estate excise tax to certain foreclosures ($34.4 million),
• Limit the sales tax exemption for nonresidents to purchases over $25 ($21.9 million),
• Apply the sales tax to bottled water ($23.2 million),
• Increase the business and occupation (B&O) tax rate for resellers of prescription drugs ($17.6 million),
• Increase the B&O tax rate for travel agents and tour operators ($6.1 million), and
• Increase the B&O tax rate for international investment services ($16.3 million).

The first three on the list have been proposed often — most recently by Gov. Inslee in December as part of his teacher shortage proposal. (Based on the description from the House Democrats, their non-resident sales tax proposal may be a bit different.) The increased B&O rate for resellers of prescription drugs has also often been proposed, including in 2013, 2014, and 2015. Similarly, the increased rate for travel agents and tour operators was proposed, for example, in 2013.

The increased rate for international investment services isn't as common a proposal. In 2014 the Joint Legislative Audit & Review Committee reviewed the preference. The Legislative Auditor recommended that the Legislature review the preference to determine if it is still necessary and clarify which businesses and income qualify. The Citizen Commission endorsed that recommendation, but the Committee (made up of legislators) recommended continuing the tax rate as is.