The Senate Ways & Means Committee has approved out a two-bill revenue package that would generate $890 million to help close the state's $2.8 billion budget gap.

The committee met at noon and again at 6 this evening to finish its work. The package it advanced is notably different than the one that was initially proposed.

Senate Bill 6874 would increase cigarette taxes by $1 per pack and was voted out on a voice vote.

Senate Bill 6143 was voted out on a 12-10 vote. It includes a proposed temporary three-tenths of 1 percent sales tax increase, the implementation of the Working Families Tax Credit, the closure of a series of tax loopholes, the implementation of a sales tax on bottled water and the implementation of a three-year business and occupation tax surcharge on services of one-quarter of 1 percent. The latter would be teamed with an increase in the small business tax credit from $35 per month to $70 per month.

More than a dozen tax loopholes would be closed. No longer among them is a sales tax exemption for used car trade-ins.

As has been previously reported, the sales tax increase would be for three years and would include funding for the Working Families Tax Credit to dramatically reduce the impact on low income families. The department of revenue has estimated the tax increase would cost the typical household $29.33 a year. The tax credit, provided to those eligible for the federal Earned Income Tax Credit, would provide a minimum rebate of $25.

Backers of the cigarette tax bill said the bill is about more than collecting additional tax dollars.

"I don't think it's about revenue," said Sen. Rodney Tom, a Bellevue Democrat and bill sponsor. "It's about reform."

"One thing we know is when the price goes up, use goes down," said Sen. Karen Keiser, a Kent Democrat and chairwoman of the Senate Health & Long Term Care Committee.