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Hawaii Legislature passes tax hikes to ease budget gap 

Governor may veto added burden on upper-income residents, tourists
Jump to full article: Honolulu Advertiser, 2009-04-23
Author: Derrick DePledge Advertiser Government Writer

Intro:

Ignoring Gov. Linda Lingle's veto threat, the state House and Senate voted yesterday to raise taxes to help balance the state's budget.

The bills would increase state income taxes on the affluent, hotel-room taxes that fall mainly on tourists, cigarette and other tobacco taxes, and the conveyance tax on the sale of luxury homes. . . .

Lawmakers voted to raise the state's 10-cent-per-cigarette tax by 2 cents in July, in addition to the 1-cent increase already scheduled, bringing the tax to 13 cents. Previously scheduled 1-cent increases would bring the tax to 14 cents in July 2010 and 15 cents in July 2011.

The state's tax on the wholesale price of tobacco products, such as chewing tobacco or pipe tobacco, would rise from 40 percent to 70 percent starting at the end of September. The state's tax on cigars would increase from 40 percent to 50 percent, and smaller cigars that resemble cigarettes would be taxed like cigarettes.

Lingle has said she would consider the higher taxes on cigarettes and other tobacco products.

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