Senate revives ethanol tax break

Pacific Business News (Honolulu)
April 10, 2007

Some state senators are trying to reinstate a tax exemption on the sale of gasoline and other fuels containing ethanol.

A previous exemption from the state General Excise Tax on ethanol-blended fuels expired Jan. 1, and attempts to resurrect the exemption stalled earlier this legislative session. House leaders had argued that the proposed exemption had to be balanced against other legislative priorities.

But on Tuesday, the Senate attached the gas tax exemption as a floor amendment to a House bill intended to increase penalties for vehicle weight and length violations. The amended bill also would increase the gasoline license tax by one cent, with funds collected going to the state highway fund.

The bill now moves into conference committee between the two chambers. Sen. Ron Menor, D-Mililani, estimated that, if approved, the legislation would reduce taxes by as much as 10 cents a gallon.

"I hope the oil companies realize that we want to see these savings passed on to Hawaii's drivers," said Sen. Kalani English, D-E. Maui-Molokai-Lanai. "We will be watching that very closely."

© American City Business Journals Inc.

Original article URL: http://pacific.bizjournals.com/pacific/stories/2007/04/09/daily29.html?t=printable

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