Pro-tax delegates caution Senate

RICHMOND — Delegates who are expected to vote on a proposed sales-tax increase today warned the Senate yesterday that they will reject any calls for raising other taxes.

The half-percent sales-tax measure is widely seen as an opportunity to end a weeks-long impasse on the budget, with the House moving toward the Senate’s pro-tax stance.

Senators have been tight-lipped about whether they plan to add new taxes to the bill if the House passes it today. But several delegates said the Senate should not use the bill — which would raise $972 million in new taxes — as an opportunity to put more tax increases on the table.

“The $972 million is it for us,” said Delegate L. Preston Bryant Jr., Amherst County Republican, who is championing the tax bill that would boost the state sales tax from 4.5 percent to 5 percent.

Delegate Harry Parrish, Prince William County Republican who sponsored the bill, agreed: “Almost all of us who are in favor of the bill are not going to vote for anything over a billion dollars.”

Gov. Mark Warner, a Democrat, urged the Senate yesterday to focus on working out a compromise with the House. Mr. Warner told The Washington Times he wants any changes the Senate adds to the plan to be “within the framework of getting a deal done.”

“I’m hopeful that a compromise bill will get out of the House and that the Senate will stay in session and respond appropriately,” Mr. Warner said. “… But I don’t want to make any predictions.”

Mr. Warner also said he encouraged House Republicans to ask senators what amendments they might add to the bill if it passes.

Seventeen maverick House Republicans have said they plan to join most of the 37 Democrats to vote for the tax increase. The bill needs only a simple majority, or 51 votes, to pass the House.

Mr. Warner told The Times that Republicans have been getting pressure from antitax groups and constituents over the last four days. Antitax groups are threatening to challenge the delegates at next year’s primaries, while voters are encouraging them to “finish your job” and “compromise,” he said.

Mr. Warner said it looked like delegates were sticking to their pledge to vote for the tax increase. “I understand this is a tough vote,” he said.

Both chambers have been deadlocked on the budget since last month. The Senate had pushed for a budget that includes a $2.4 billion tax increase, calling for raising the sales, cigarette and income taxes. The House’s $972 million plan is only four-tenths the size of the Senate’s.

Over the last few weeks, lawmakers have been inching toward an agreement.

The Senate promised to remove the income-tax increase from its plan when Mr. Parrish proposed the half-percent sales-tax increase. A few weeks earlier, the Senate dropped a plan that would have raised $1.6 billion for transportation by raising the gasoline tax.

None of the maverick delegates voted in favor of the Senate’s $2.4 billion tax increase plan. So lawmakers said yesterday it is highly unlikely those delegates will vote for anything higher than the half-percent sales-tax increase.

Delegate Thomas Davis Rust of Fairfax County is one of the Republicans who plans to vote for the plan today. “The money is needed to keep Virginia from slipping further,” he said, adding that he will not accept any higher tax proposals.

House Speaker William J. Howell, Stafford County Republican, who opposes general tax increases, said the House won’t accept other tax proposals. “If they put a couple hundred million more in it, it wouldn’t fare as well when it comes back,” he said.

Mr. Parrish’s bill would boost the sales tax, increase the cigarette tax from 2.5 cents per pack to 30 cents per pack in 2005 and raise the tax on real estate transactions from 15 cents to 25 cents per $100.

His bill also includes tax cuts — including the elimination of the “death” tax, reduction of the food tax by a penny from 4 cents to 3 cents on the dollar by the end of 2006, and numerous income-tax cuts.

Mr. Warner would not say whether he endorses the plan, but he said it incorporates many things he proposed in his tax-reform package in November.

“I think it is a major step forward,” Mr. Warner said. “It will help us address some of the structural imbalances and meet our core commitments.”

Some delegates who are opposed to the tax increases chastised Mr. Warner for not fully endorsing the plan. Last week, Mr. Warner called the plan a “breakthrough” that could lead to “meaningful compromise.”

Delegate David B. Albo, Fairfax County Republican, said yesterday he won’t vote for the plan because Mr. Warner did not offer a strong enough endorsement last week. Mr. Albo said he wanted Mr. Warner to ask the Senate to accept the deal.

Delegate Joe T. May, Loudoun County Republican, who is seeking the Republican nomination for lieutenant governor next year, also said yesterday he will vote against the bill.

“Taxes suck the lifeblood out of families, businesses and our economy’s growth,” he said. “We don’t want to enact a tax increase that will snuff out [economic] growth. It’s like stepping over a dollar to pick up a dime.”

Meanwhile, Mr. Warner solidified one Republican vote for the bill yesterday when he announced that he would sign an executive order creating a new position, state inspector general. The bill was sponsored by Delegate Gary A. Reese, Fairfax County Republican, who has said he will vote in favor of the sales-tax increase.

The inspector general will review government efficiency, and a related working group will seek ways to simplify the state budget. Mr. Warner’s order is modeled on legislation sponsored by Mr. Reese that was carried over until next year.

“I’ve always said I could not vote for a general increase in taxes without budget reform,” Mr. Reese said. “We’re going to have reform.”

Asked if Mr. Warner’s action was a deal to secure his support for the tax increase, Mr. Reese said: “The governor kept his promise to me, and I’m going to keep my promise to him.”

Warner spokeswoman Ellen Qualls said there was no link between the executive order and Mr. Reese’s support for the tax increase.

“The governor and Delegate Reese have talked about these issues for two years,” Miss Qualls said.

• This article is based in part on wire service reports.