- The Washington Times - Friday, July 31, 2009

WASHINGTON — The D.C. Council has adopted a budget that includes increases in sales, gas and cigarette taxes expected to raise $50 million.

Council members unanimously approved the increases Friday in an effort to close a projected $666 million budget shortfall over the next three years. They avoided dipping into the city’s rainy-day fund.

The council agreed to raise the sales tax from 5.75 percent to 6 percent and the city’s 20 cent-a-gallon gas tax by 3.5 cents. D.C.’s cigarette tax would increase by 50 cents, to $2.50 a pack, making it the sixth-highest in the country, according to the American Lung Association.

The council also endorsed more than $100 million in spending cuts, affecting summer school, police hiring and summer jobs for young people.

The budget now goes to the mayor for approval.



Click to Read More

Click to Hide