The document discusses several options for generating state revenue, including: 1) Closing the telecom tax loophole which could generate $54 million by requiring telecom companies to pay property taxes. 2) Increasing the corporate tax rate by 1% which could generate $100 million instead of allowing the scheduled decrease. 3) Increasing the gas tax by 19 cents per gallon which the Governor has proposed and could generate $494 million for transportation needs. 4) Increasing meals and hotel taxes by 1% which could generate $158 million and give cities/towns another tax option besides property taxes.

1. How would you generate revenue? Closing the Telecom Tax Loophole $54 million Currently telecom companies don’t pay property tax. This would require that they pay their fair share. 1% increase in the corporate tax $100 million Currently the corporate tax rate is scheduled to decrease from 9.5 to 8.0 percent over the next three years. TARGETED TO USE BROADBASED 19 cent a gallon gas tax $494 million in revenue The Governor has proposed a 19 cent gas tax to fund comprehensive transportation needs. 1% increase in meals and hotel taxes $158 million This is also offered as a local option tax so that cities and towns have another option to the property tax. Drop exemptions on candy, soda, and liquor $150 million Not a new tax, currently no one pays sales tax on these items. 1% increase in the income tax $ 1.7 billion personal income tax is a flat rate of 5.3% on most personal income. 1% increase in the sales tax $723 million This means you pay more on everything you buy except food, medicine, and clothing under $175. Increase Property Taxes Depends on where you live This tax is levied at the local level to fund town services, including education, trash removal, etc.