Hawaii's Train to Tax Hell Continues

The train to tax hell.

As the calendar turned from the year 2006 to 2007, the State of Hawaii once again perpetuated its long running reputation as being a "tax hell." The new year saw several taxes, fees and costs spiral up again.

The biggest tax increase in the State of Hawaii went into effect on January 1. The General Excise Tax (GET) which is levied on every good and service in the state suffered a 12.5% increase. The increase is supposed to finance Honolulu's $6 billion rail transit proposal. Every resident and visitor to the island of Oahu will be paying this higher tax. Many residents and visitors the neighbor islands will also be paying this tax.

Governor Linda Lingle let the increase to the General Excise Tax happen in 2005 after HB 1309 passed into law without her signature. She could have vetoed the damn bill, but did not on the false premise that allowing the county to levy this tax was "a home rule issue." Baloney!

In the end the State of Hawaii Department of Taxation ended up administering the collection of the tax, with the county getting the bulk of the 12.5% surcharge and the state scraping a little off the top as part of an administrative charge. So in the end you get the state doing the collection but the City & County of Honolulu reaping the benefit solely to build the rail while businesses and public get hit in the wallets. Thanks Governor Lingle for nothing.

By the way, Mayor Mufi Hannemann signed Bill 79 into law yesterday. He had the ceremonial bill signing in Kapolei where train support is the highest. He is too afraid to do it in urban Honolulu because as he well knows, the opposition to rail is strong as noted in the Honolulu Star-Bulletin today:

"I just feel that if we try to do this somewhere in the urban, downtown area, we are going to run into all types of concerns. The city could be taken to court or face other types of resistance from landowners and others who oppose it," the mayor said. "And I know that coming from the west side, we are not gonna have those kinds of issues."

Besides the dreaded increase to the GET, several other taxes, fees and costs have recently gone up, thanks to our legislators, the governor, county leaders, public utilities and some corporations. These include the following:

• 11% increase to the gasoline tax due to the sunset of the ethanol tax credit. (2007)
• Property Tax Assessments Increased (ouch!)
  
• $5 hike to vehicle registration fees. (2007)
  
• Increases to the conveyance tax (2005, 1990s)
• The "Hi-5" Bottle Recycling Tax (2004)
• HECO electric rate increase (proposed 2007)
• 9-11 Cell Phone Fee
• Increase shipping charges by Young Brothers (2007)

All of these add to the increased cost burden of living in Hawaii. When will these added costs be eliminated or reduced? It's harder and harder for people to stretch limited dollars while government takes them away to build foolish projects like a $6 billion choo choo train.

Time to stop the madness today.

Additional reading & information links:

• Mayor Signs City Transit Bill
  
• The Search for Honolulu's "Holy Rail" Brings Largest Tax Hike in Hawaii's History
• Year of the Pig - Pritchett Cartoon
• Gas Tax Will Pump Up the Price
  
• Tax Raises Island Gas Price
  
• Excise Tax Increase Begins Tomorrow
• Rail Taxman Cometh
  
• HECO Eyes Rate Increase
  
• Looming Tax Hikes Fill Stores, Gas Tanks
• The State's Gas Tax Money Grab
  
• Hawaii Residents Burdened with Many Tax Hikes in Recent Years
• Yes, Hawaii Can Get Even More Expensive
• Thanks Mayor Hannemann For Making Me a Millionaire
  
• Honolulu Transit: A Black Hole
• Honolulu City Officials Want Us Out of Our Cars
• Honolulu's Proposed Rail Transit: A $4.6 Billion White Elephant
• New Laws for the New Year
• Road to Nowhere
  
• Stop The Tax Increase
  
• Rail System Cost Higher Today
• Rail Transit - expect to be pounded if you oppose rail there.
• Rail System Garners Mixed Feelings
  
• Here Comes the Tax Increase Ready or Not
  
• 61 Days Until Hawaii is Hit with Higher Taxes
• They Built it But No One's Riding
• Environmentalists Want to Guarantee Increased Property Taxes
• The Ugliness of Collecting the New GET Tax
• Rail: Expensive & Ugly
• Governor Lingle Rescinds Decision to Veto Tax Increase (2005)
• Business Bill Voting Matrix (2005)
• Rail Transit Myths
• We Oppose Rail & GE Tax Increase
• Individuals Opposing Rail & the GE Tax Increase - join us!
• Ramming Rail & Taxes Down Our Throats
  
• No New Taxes Hawaii!