In Hawaii cigarettes tax had a four-month holiday because of an error. Hawaii Government cast votes for a big tax hike on tobacco. But they didn’t read the bill carefully, and it repealed the tax on several products.

Such a mistake in a newly enacted state law is good news for pipe and cigar smokers, as well as those who use snuff and chew tobacco. The error gives them a four-month tobacco tax holiday.
This inattention will result in a $400,000 loss in income, said researchers.

House Bill 895 was prohibited by Gov. Linda Lingle, who said it was busy with technical mistakes. The Legislature canceled the veto, and now some of those mistakes are becoming evident.
Lingle reported: "It contains major technical faults that defeat the purpose of the legislation and will make it virtually impossible to execute."

The careless tax holiday was caused by a mistake in the bill that did not specify the tax on tobacco products other than cigarettes during the period from enactment until September 30th.

Rep. Marcus Oshiro, Finance Committee chairman, said that the mistaken tax holiday cannot be corrected, but the cigarette tax switch can be manipulated by the legislative reviser.

The tobacco tax increase is an important part of the Legislature's plan for to balance the state budget and is estimated to bring in an extra $22 million a year.

But Linda Smith, Lingle's senior policy adviser, said they are asking the lawyer general for guidance because they think the law is rejected.

Lowell Kalapa, executive director of the independent Tax Foundation of Hawaii, said that he doubts that the revise of statues has the power to put the bills together.