Senate approves nearly $500 million tax package

BOSTON—The Massachusetts Senate has approved a nearly $500 million tax package, including a dollar-a-pack hike on cigarettes.

At the same time, the Senate voted to lift the state-mandated minimum price for a pack of cigarettes.

The package also closes so-called corporate tax loopholes. The House and Senate now must iron out differences between their versions of the tax bill.

Republicans say the tax initiative is unnecessary given that the state has been collecting more tax revenues than anticipated. Tax collections shot up in April by $400 million compared with the same month last year.

That puts revenues collected for the current fiscal year at more than $1.1 billion over the original estimate.

Democrats say the state is still facing a structural deficit and needs the extra revenue.