Hawaii residents and visitors will pay hundreds of millions more in added taxes, after the legislature overrode four of the governor's tax hike vetoes.
Taxes are heading up on hotel stays, income, property sales and tobacco. it's likely not the end of the veto showdowns.
The legislature had extended its session by 2 days, in anticipation of vetoes the governor handed down Thursday before a big crowd.
On Friday, the crowds of tax opponents and civil union watchers were gone, and lawmakers closed the session with four tax veto overrides.
The tax hikes that go into effect July first could bring in around 200 million dollars more over 2 years.
"We have little other alternative at this point so these targeted and modest tax revenue generation measures are the reasonable approach which we unfortunately at this time have to take," said House Majority Leader, Blake Oshiro.
The governor says they're unreasonable, unnecessary and may backfire. "When you implement you expect to get more, actually will get less."
The two-thirds override margins needed were closest on the 2 percent hotel tax hike over 2 years and the income tax increases that will hit higher-income earners. But also thousands of small businesses. Several lawmakers already are looking toward next year to try to fix that. "And maybe focus more on removing the exemptions and still promoting business, but being able to make sure we're accountable for the money we give out," said Representative Jessica Wooley.
Lawmakers say they expect the tough times to spill over into the next session, where they may consider adding a general excise tax hike.
House Speaker, Calvin Say adds, "If we do address the general excise tax I would like to repeal some of the exemptions to offset it."
But if the economy recovers, lawmakers say they'll try to repeal the tax hikes before their 2012 or 2015 sunset dates.
"I believe we are committed to seek to sunset them sooner, because we are doing it only because of this economy crisis we are in right now," said Representative Colleen Hanabusa.
More vetoes are possible and many lawmakers and advocates expect an override session would come if a tax hike of a dollar-per-barrel of oil is vetoed.
