Hawaii oil taxes going up after veto override - Hawaii News Now - KGMB and KHNL

Hawaii oil taxes going up after veto override

HONOLULU (AP) - A new oil tax is now law in Hawaii after state lawmakers overrode Governor Linda Lingle's veto of the proposal. The tax increase passed Thursday with the two-thirds majorities needed in the House and Senate to override the governor.

The oil tax hike will increase gasoline and electricity costs, with its $22 million annual proceeds going to the state budget and Hawaii's renewable energy programs. The tax will increase gas prices by about 2.5 cents per gallon and raise residential electricity bills by 78 cents per month.

The tax will be paid on every barrel of oil shipped into Hawaii, with the costs likely passed on to consumers. The law calls for the tax to increase from 5 cents to $1.05 per barrel of oil.

Copyright 2010 by The Associated Press. All Rights Reserved.

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