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I was a reporter for close to 17 years at the Hawaii Tribune-Herald until October 2005, when I joined the growing ranks of union leaders now formerly employed by the newspaper. (For more about what's happening at the Tribune-Herald, check out the Hawaii Newspaper Guild web site.) Since then I've been the Hilo unit representative for the Guild, a freelance writer, photographer, and blogger.  Puna has been my family's home since 1993.

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Sunday
31Dec

Caldwell on cracks; rebate the gas tax

I nearly choked on my New Year's ahi when I read state Rep. Kirk Caldwell's excuse for the Legislature failing to extend the 11-cent gas tax exemption that ended when you were out celebrating with fireworks last night. "It fell through the cracks," he said. "It fell through the cracks."

Gas caps and pump prices have been near the top of the state's agenda for two or three years but Caldwell says an automatic 11-cent increase in the nation's highest price wasn't enough get noticed.  Maybe they'll repeal it this year, he suggested.

If it makes you feel any better, Hawaii will now have the distinction of not only having the highest gasoline prices in the nation, but the highest gasoline taxes as well, finally outstripping New York's take from motorists.  And the industry spokesperson predictably said pricing is all such a whirl of confusion that I thought she'd get the vapors just talking to the reporter about it. So don't worry, the industry folks are tending to it.Ttrust them. They know what we're doing.

According to the article, everybody -- Republicans and Democrats all -- wanted to extend this exemption last year but, you know, those darn cracks.

So here's my suggestion:  I propose that the state tax rebate we're supposed to get this year start with the entire amount of money  expected to be gained by the state from the 11-cent tax between now and the time the legislature actually does repeal it. Wouldn't that be the only fair thing to do for taxpayers if the only reason it wasn't already done is that it fell through the cracks?

By the way, how much do you think the rebate should be? You may recall that Gov. Lingle called for a $150 rebate per taxpayer last January. We didn't get a tax rebate last year, but this year a rebate is mandated by law.

(Caution: The Honolulu Advertiser story linked to above has a glaring error near the bottom that was pointed out by Doug White at Poinography but apparently was not fixed in the online story. Economist Leroy Laney reportedly said Hawaii has both a sales tax and general excise tax. Maybe it was supposed to say income tax and general excise tax, because Hawaii has no sales tax. ( I don't know if there was a print correction.)


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Reader Comments (5)

Wonder if using a cheap running vehicle would help here? I know that a tax exemption of 11 cents per gallon of gas on a full tank of gas for my car would have saved me $1.21 or roughly about $63 per year. So what is the average savings for most of us with this exemption?
January 1, 2007 | Unregistered CommenterJosephine Keliipio
Sorry, I guess there is no such thing as a cheap running vehicle anymore unless we're talking about the Honda Ruckus (moped) that gives 100 miles to the gallon. But I sure would like to know how this exemption would affect us in terms of annual dollar savings on the average and what else can we do to adjust for not having it?
January 1, 2007 | Unregistered CommenterJosephine Keliipio
I have been curious as to why no news outlet has been doing a weekly *If the gas cap was still in place you would be paying* feature. We have never seen a proper follow up regarding the gas cap law and the prices we are paying now. Has any reader here seen something like this? People where always getting upset when prices coming down were a 1 week lag from the mainland -- knowing of course, that the prices reflected a 1 week lag when going up.
January 1, 2007 | Unregistered CommenterRodion
I have no problem with paying higher sales tax on gas. In fact, those taxes are what account for most of why European gas has always been so high. In return, they get some of the finest transportation available in the world. Its when the price goes up only to fill the pockets of the Oil magnets that gets me.
January 1, 2007 | Unregistered CommenterChuck
Chuck makes a good point. I know that the County gets some funds from the gasoline tax too which is how they were able to finance the 7 speed humps on my roadway. Maybe the higher taxes could be used to finance more buses.
January 1, 2007 | Unregistered CommenterJosephine Keliipio

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