HARRISBURG -- Raising the state sales tax to 6.5 percent is the latest idea being considered as a way to raise revenue for trimming school property taxes.

An increase from the current 6 percent "would be a modest first step" that would generate about $650 million a year in additional funds to be used to reduce homeowners' property taxes, Senate Majority Leader David Brightbill, R-Lebanon, said yesterday.

The proposal would increase the sales tax by 0.5 percent, putting it at 6.5 percent in 65 counties and 7.5 percent in Allegheny and Philadelphia counties.

The idea "has gained some support [among legislators] in the last three to four weeks," said Mr. Brightbill, who added that the Senate might vote on it within three weeks.

Sen. John Wozniak, D-Johnstown, also was interested.

"We will have a serious look at a half-percent increase in the sales tax," he said after a Senate hearing yesterday on other ideas for broadening the base of the sales tax to raise more revenue.

If $1 billion or more in annual revenue from slot machines is added to the additional sales tax revenue, Mr. Wozniak said, "the amount available for property tax relief approaches $2 billion and that's a lot of money."

Once all 14 new slots casinos are operational in a couple of years, the additional revenue could provide an average of about $400 per year in school property tax relief, senators said.

Mr. Brightbill said there are two other elements likely to be in the bill when it comes before the Senate. One would allow each of the state's 501 school districts to enact a tax swap -- increasing the earned income tax on residents and using that money, dollar-for-dollar, to reduce property taxes further.

The other idea, which nearly all legislators like, is called a "back-end referendum." It would let residents of each school district vote on any new school budget that exceeds an annual rate of inflation. The rationale is to prevent school budgets from rising too fast and wiping out any property tax reductions that residents get.

If the Senate passes a tax relief plan, it would then go to the House.

Stephen Miskin, an aide to House Majority Leader Sam Smith, R-Punxsutawney, wouldn't comment on the 0.5 percent sales tax increase, saying it's too soon because House members haven't seen the details of a Senate bill.

The Senate's $400 a year in homeowner tax relief is less than an estimated $880 per year in property tax relief from a plan approved by the House late last year.

That plan relied, however, on extending the current 6 percent sales tax to many items not now covered, including candy, chewing gum, newspaper, radio and television advertising, dry cleaning, janitorial services, and fees at campgrounds, ski resorts, amusement parks, car washes, insurance firms and many other businesses.

Those sales tax changes have generated vocal opposition from businesses in recent weeks, including a parade of executives who came to a Senate tax hearing yesterday.

Andrew Quinn, director of community relations for Kennywood Entertainment Corp., said his company already pays more than $2 million a year in amusement taxes at Kennywood Park, Sandcastle and Idlewild Park. It can't afford to have the sales tax added on top of the existing amusement taxes, he said.

"We are heavily taxed now and just can't take another tax," he said.

Two newspaper publishers, Martin Till of the Easton Express Times and Harold Miller of Lancaster Newspapers, plus Lancaster television station executive Paul Quinn, opposed a plan to extend the state sales tax to media advertising.

"An ad tax would serve as a brake on the economy and increase unemployment in Pennsylvania," as newspapers and TV stations lost money, Mr. Till said. With such a tax, "significant advertising dollars would leave Pennsylvania and go to newspapers in bordering states."

Mr. Wozniak said he doesn't like the ad tax, quipping, "I never get into arguments with people who buy ink by the barrel."

Mr. Brightbill said he hoped the news executives would support legislators' efforts to find a solution to the knotty problem of property tax relief.

"This is a very, very difficult drill," he said, because taxes for some people are going to rise to generate the funds needed to reduce property taxes for homeowners.