By Jo Becker
Washington Post Staff Writer
Saturday, April 3, 2004; Page B01

RICHMOND, April 2 -- Speaker William J. Howell said Friday that he would allow the House of Delegates to vote on a budget compromise that includes a half-cent-per-dollar increase in the Virginia sales tax, though he personally opposes it.

"I will urge every member of the House to vote his or her conscience when the issue is before the full House," the Stafford County Republican said in a statement.

Howell's announcement came in response to an effort by a maverick group of GOP delegates to end the stalemate between the House and Senate over a budget that has forced a special session.

The group said this week that 15 to 20 Republican delegates would be willing to join with Democrats to pass a budget supported by the half-penny increase and a modest increase in the cigarette tax in combination with tax relief in other areas such as the state's levy on groceries.

Howell has strongly opposed any deal that would increase the sales or income tax, as the Senate proposed.

His statement helps clear the way for the group of Republican delegates to present its proposal when the House resumes its special session Tuesday.

"I have told House Republicans who express potential support for the half-cent sales tax increase that they should get together, draft the best compromise revenue bill they can and be prepared to present it to the full House of Delegates next week," Howell said.

Anti-tax activists vowed Friday to retaliate against House Republicans who support an increase in the sales tax, which is currently 4.5 cents per dollar.

The Virginia chapter of the Club for Growth began targeting renegade and wavering lawmakers with a phone and mail campaign directed at their constituents. The anti-tax group also promised a primary challenge against any lawmaker who joins the coalition. "We're going to go after them, and we're not going to wait until next year," said Peter Ferrara, the anti-tax group's president. "This will be a vote that will identify the targets for replacement" in next year's House elections.

Some members of the breakaway group said their fear of a primary opponent has been trumped by their concern that a continued standoff could lead to a government shutdown, which could be blamed on the Republicans, who control the House and Senate.

Del. G. Glenn Oder (R-Newport News) has seen the mailer the Club for Growth plans to send to his constituents labeling him a tax-and-spender. The group e-mailed it to all House Republicans as a warning of what could be in store for them. The group also plans to begin airing a radio ad against Oder on Monday.

Oder said he does not regret endorsing a half-cent sales tax increase and repudiating the House leadership's position that any general tax increase be put to a referendum. "I've studied the issues and made a decision regardless of the political consequences," he said. "We've got to reach a compromise. Anything else is unacceptable."

Meanwhile, several more delegates stepped forward today to support a half-cent compromise. Del. Daniel W. Marshall III (R-Danville) said he was doing so because "there's a lot of anxiety out there by localities and public schools" that depend on state aid.

"Personally, I'm not worried -- if they want to come and run against me, so be it," said Marshall, who also advocates giving local governments the option of raising an additional half-cent. "The message I hear from constituents is loud and clear: Get a budget."

Del. Robert Hurt (R-Pittsylvania) said he, too, could support a half-cent increase, though reluctantly. "I hear a great deal about 'Why can't you guys go down there and get your job done?' " he said.

Gov. Mark R. Warner (D) and Senate leaders support a one-cent sales tax increase as part of their plans to meet the state's long-term needs and end chronic budget shortfalls.

The stalemate led lawmakers to take the extraordinary step of adjourning Mach 16 without a budget, and it has stymied a deal in the reconvened special session.

Warner and Senate leaders have said they are encouraged that the shifting dynamic in the House could lead to a breakthrough.

Several said the threats of anti-tax groups such as the Club for Growth have been undercut by their failure to mobilize their supporters for recent town-hall meetings across the state.

Instead, those meetings have been packed by education and health advocates who joined with officials from local governments in demanding a resolution.

"Public indignation has been a major factor," said Del. James H. Dillard II (R-Fairfax). "The right-wing crazies may give you a primary, but they don't get you elected."

James T. Parmelee, who heads an anti-tax group called Republicans United for Tax Relief, blamed the crumbling opposition to taxes on ineffective leadership.

The House, he said, moved from opposing new taxes to a plan that removed some tax exemptions for businesses to a call for a referendum to a plan to pass a stopgap budget to keep government operating if a deal could not be reached by June 30, when the current budget expires.