7 months ago
WASHINGTON (WUSA/AP) -- The DC 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. DC'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.
One smoker walking through Georgetown said, "Our government needs the money. I don't agree with raising cigarette taxes, but I'm not in the seat."
Councilmember Jim Graham was in the seat. He voted in favor of the plan but said he would've preferred to raised income taxes on the wealthiest people making over $500,000.
Ohio tourist, Rick Petticrew, said, "Anytime you raise taxes, people quit buying things. It doesn't work. When are they going to learn."
The sales in Ohio is between 6.5 and 7 percent. Maryland is 6 percent and Virginia's is only 5 percent.
David Martin, owner of Johnson's Flowers in Northwest does not think the tax hike will chase customers to Virginia.
"In the metropolitan area, people move so freely between DC, Virginia and Maryland. I think many people don't even know what the sales tax rate is," says Martin.
The DC 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.
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