By all accounts, a minor dispute between Gov. Linda Lingle and Mayor Mufi Hannemann over how a new transit-focused excise tax will be collected has been cleared up.

Let's hope that's the case. It would be a colossal shame if O'ahu's last best chance at putting a transportation system together is lost.

The issue is who will be responsible for collecting a new half-percent excise tax aimed at producing the local share of money toward a new transit system. The tax is supposed to go into effect in January, sending a strong signal to Washington that state and local officials are serious.

It makes sense to have the state collect the tax. But there are substantial startup costs, and Lingle has made it clear she doesn't see why the state should pay for what is a county tax and county project.

The state says it is now ready to begin setting the new collection system into motion, even though Honolulu has yet to come up with the $5 million in estimated startup costs. The Honolulu City Council is considering such an appropriation, but the matter is moving slowly.

In the meantime, the state has begun negotiations with a consultant to rewrite the software to take care of this new tax. This is far from simple: Questions about where multi-island businesses would pay their tax remain to be sorted out, for instance.

But it is necessary — no — imperative work.

If Hawai'i is not ready in January, expect Washington to look at us as once again not serious about transit. That could endanger federal support.

It is critical that the state get the new collection system up and running well before the January start date. And it is only fair that Honolulu reimburse the state for the costs of that startup.