As the state Legislature moves into its last three weeks, Democrats are positioning a series of tax law changes and tax increases that they hope will balance the budget without raising the general excise tax.

House Bill 2421, the so-called barrel tax bill, will raise the state tax on a barrel of oil brought into Hawaii to $1.05 from 5 cents.

Tentative estimates from the state Department of Taxation say it would raise about $22 million, while supporters say it could raise $25 million.

A similar bill was approved by the Legislature last year but vetoed by Gov. Linda Lingle primarily because it was a tax increase that would hurt motorists.

To make this year's measure more palatable, lawmakers took out fuel that would be used by airlines, so as not to cause an increase in airline fares.

But the measure is expected to raise local gasoline costs for motorists by 2.5 cents a gallon.

While first portrayed as an environmental bill, with the money going to increase government support for energy independence, lawmakers are dumping 60 percent of the barrel tax money into the general fund this year to help balance the budget.

“;It goes into the general fund because the general fund is in trouble,”; state Rep. Hermina Morita (D, Hanalei-Kapaa) said, adding that the bill is set to expire in five years.

State Sen. Clayton Hee (D, Kahuku-Kaneohe), who steered the measure for the Senate in conference committee, said the tax had to increase because the state needs the money.

“;Unfortunately, there is a general reluctance in this building to raise the general excise tax,”; Hee said.

The only objection yesterday came from state Rep. Cynthia Thielen (R, Kaneohe-Kailua), who wanted all the money going to environmental programs.

“;I voted no because it puts the majority of the money into the general fund. It is a blatant tax. It is just a tax that hits the motoring public,”; Thielen said.

Environmentalist Jeff Mikulina, with the Blue Planet Foundation, praised the bill, calling it “;a step in the right direction.”;

Lowell Kalapa, Tax Foundation of Hawaii president, said the bill has turned into a revenue bill that will fool the public.

“;Because the tax is imposed at the front end of the consumption chain, by the time the cost of the tax is paid by the retail consumer, they won't know who is responsible for the higher cost of the gallon of gasoline or for the higher cost of the energy utilities or for the higher cost of their groceries,”; said Kalapa.

TAX BILLS MOVING TOWARD LEGISLATIVE APPROVAL

Here are some other tax bills that the Legislature is moving into position for final approval tomorrow. If they pass, they will go to Gov. Linda Lingle. If Lingle vetoes the bills, the majority Democrats hope to have the votes to override the vetoes before the session ends April 29.

» House Bill 1907: Temporarily places a cap on itemized deductions claimed on state income tax returns until Jan. 1, 2016. The bill would be applied to couples with incomes of above $300,000.

» HB 2866: Taxes the transfer of a taxable estate located in Hawaii by a nonresident who is not a U.S. citizen.

» HB 1985: Increases the tax on cigarettes and little cigars by 1 cent for sales on or after July 1, 2010, and temporarily increases certain fees paid by insurance companies and agents.