Hawaii oil taxes going up after lawmakers override Lingle's veto
The state House and Senate voted today to override Gov. Linda Lingle's veto of a bill that increases the barrel tax on petroleum products from 5 cents to $1.05.
The bill, which now becomes law, would generate $22 million a year to help reduce the state's budget deficit and finance food and energy-security programs.
Lingle had vetoed the bill because it would raise consumer costs. The higher tax, if passed on to consumers, could increase the price of gasoline and electricity.
Environmentalists had wanted all the proceeds from the barrel tax increase to go for food and energy security programs to help reduce the state's dependence on imported oil.
But lawmakers, searching for new revenue to close the deficit, diverted more than $13 million to the general fund, with more than $8 million for environmental initiatives.
Lawmakers cast override votes on several of Lingle's vetoes today, the last day of the 60-day session.
The bill is HB2421.