Hawaii’s Democrat-dominated Senate voted overwhelmingly to increase the hotel tax from 7.25% to 8.25% on July 1, and then to 9.25% on July 1, 2010.
The measure, along with other tax proposals, addresses a budget shortfall in Hawaii.
The vote was 19-5, with three Democrats opting to side with the Senate’s two Republicans, reports the Pacific Business Journal.
Gov. Linda Lingle, a Republican, said she might veto the bill, but the Senate has enough votes to override the veto.
Naturally, the hurting hotel industry in Hawaii is none too pleased.