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Posted: Thursday, August 11th, 2005 5:07 AM HST

Honolulu City Council passes bill to add surcharge to excise tax

By Associated Press

KAPOLEI, Hawaii (AP) _ The Honolulu City Council has voted seven-to-two to pass legislation to add a half-penny to the four-cents-on-the dollar general excise tax. The money will go to build a rail transit system on Oahu. Council members Barbara Marshall and Charles Djou cast the only ``no'' votes. The council heard from about 70 speakers before taking a vote at the city hall branch in Kapolei. The speakers were evenly divided over the tax increase. Those opposed said the council should wait until the city has a plan in place for the long-awaited rail transit system. But supporters said it was necessary now to ease Oahu's traffic crunch and improve the quality of life. The council meeting today in Kapolei was in one the most affected communities on the island when it comes to traffic. The state Legislature earlier this year passed a law that lets the counties add the surcharge to help pay for mass transit. Other counties must pass laws to impose the tax by the end of this year to take advantage of the increase. So far, none of the other counties have indicated that they will follow Honolulu's lead. Mayor Mufi Hannemann has been a strong supporter of the legislation, which Governor Lingle had threatened to veto but then allowed to become law without her signature. (Copyright 2005 by the Associated Press. All rights reserved.)