HONOLULU -- State Sen. Cal Kawamoto proposal to increase the price of gas on Oahu by 2 cents a gallon to help pay for a newly proposed rail transit system met a cold response from many the day after the opening of the Legislature.

2004 Session Senators Representatives Governor Check Bill Status Discussion

Oahu drivers KITV 4 News spoke with criticized a gas tax hike. Drivers here already pay more taxes on their gas than most drivers in the country. Most people KITV 4 News spoke with said they don't want more taxes.

"I think we are overtaxed here and I definitely would not support it," said Tom Magee of Hawaii Kai.

"I think it would be a waste of money. We are already paying a lot for gas," Marcus Kanahele of Kaimuki said.

Kawamoto's proposal calls for a new 2-cent tax on each gallon of gas sold on Oahu. He said the tax would pay for a rail system by funding Oahu's $100 million share of a possible $900 million match in federal money.

"This would help Oahu traffic and as far as we are concerned, if this is something that is needed in Oahu, people would pay into it," Kawamoto said.

Oahu drivers already pay 51 cents tax on each gallon. That breaks down as 18 cents federal tax, 16 cents state tax and 16.5 cents Honolulu County tax. In addition, drivers pay the excise tax and a state environmental tax.

"As much as a rail system may be needed, I think applying it to the gas tax would be burdensome to the consumer and for small businesses," Madeleine Snow said. "Another 2 cents for every gas load that we get."

Gas stations have to pay all federal and state taxes on gas when it is delivered to them, before they even sell it. Some gas station managers said a new state tax could cut into their cash flow.

Gov. Linda Lingle said she does not support a gas tax hike to pay for rail transit.

"Our budget plan will not include any increases in taxes or fees," Lingle said.

Lingle would not reveal if she would veto a possible tax hike.