Penny on everything, nickel on beer

Democratic Senate tax writers said their leadership has settled on a 1-cent sales tax hike and a list of alcohol and tobacco tax increases proposed by the House.

Now it's up to the House as to whether the Democratic caucus there will get behind the overall tax package.

Sen. David Hoyle, a Gaston Democrat and co-chairman of the Senate Finance Committee, said Democratic Senate leaders were proceeding with writing a budget that included a 1-cent sales tax increase. Hoyle's comments followed a Democratic caucus meeting where members also settled on a series of alcohol and beer tax proposals offered by the House, he said.

Those increases include: 0.8 cents more per can of beer (or about a nickel per six-pack), 10 cents more per pack on cigarettes, 4 cents more per bottle of wine, 5 percent more per bottle of liquor and 2.8 percent on other tobacco products, such as chewing tobacco.

The sin taxes raise $74 million this year and $101 million next year, according to Sen. Clark Jenkins, a Tarboro Democrat and another finance co-chair.

Hoyle said Democratic leaders question the idea of putting a two-year sunset on the sales tax increase, because there is not an obvious way to replace that revenue in two years.

"The sunset," Hoyle said, "means we have to vote again in two years to extend it."

Correction: Post now includes correct home town for Jenkins.