HILO — Hawaii County officials plan to ask lawmakers for more flexibility in how it can use its general excise tax surcharge.
The state Legislature previously gave counties the option of adding a half percent surcharge to the GET to fund transportation projects. The County Council approved a smaller one-quarter percent increase last June, with is set to take effect Jan. 1.
Roy Takemoto, an executive assistant to Mayor Harry Kim, said the county would like to be able to also use the revenue for other needs, including disaster response and recovery following the Kilauea eruption. Additionally, it wants clarity on whether it can pass another one-quarter percent increase by a March deadline, or if the county only had one shot at it under state law.
He said the GET issue will be raised as part of the county’s request to the Legislature for disaster recovery. That is also expected to include a funding request of about $150 million to address issues such as housing, road and other infrastructure repairs, and support for a redevelopment agency, among others.
“The county requests assistance to learn from past land use mistakes and reshape the future of Puna,” the draft request says. “This vision will require a partnership and resources of Federal, State, County, business, nonprofits, faith-based, and community stakeholders.”
The GET surcharge is expected to raise $10 million for the remainder of the 2018-19 fiscal year and $25 million a year after that before it expires Dec. 31, 2020.
The county has so far received $22 million from the state in disaster appropriations, including a $10 million transfer the council voted to accept this week.
Deanna Sako, county Finance Director, estimated at a council meeting this week that the county has spent about $8 million of the initial $12 million appropriation. About $5.4 million was for overtime costs, according to the county’s draft request to the Legislature.
The eruption began May 3 in Leilani Estates and destroyed more than 700 homes in lower Puna. Lava was last seen inside fissure 8 in early September, though flows had ended in August.
The destruction is expected to result in a decrease of property tax revenue for the county of about $4 million a year.
State Sen. Russell Ruderman said he and Rep. Joy San Buenaventura were meeting with a county official Friday to discuss what it plans to request from the Legislature.
Ruderman, D-Puna, has been critical of the county for not involving state lawmakers more in disaster response and the pace of recovery efforts, but said the delegation will fight hard for what the county seeks. He said he is optimistic the county will come away with some funding.
“People will pick at it,” Ruderman said, regarding the funding request. “I do think they will come away with some big chunk.”
He said he and San Buenaventura will propose additional legislation to address the need for a new boat ramp in Puna and land for a charter school that was destroyed, in addition to other issues related to the eruption. San Buenaventura couldn’t be reached for comment by deadline.
As for the GET, Puna Councilwoman Eileen O’Hara said she had written a resolution urging the Legislature to grant the county authority to increase the surcharge and expand its uses, but it wasn’t able to get placed on an agenda before the council term ends Dec. 3.
Email Tom Callis at tcallis@hawaiitribune-herald.com.
Yep!! Make everyone pay for people who chose to live in Lava 1 and in the path of an active volcano! More ways to rip us of! Huh Harry? Maybe we can use the extra GE money to pay for that parcel of land next to your house UNDER THE LAVA FLOW? Oh, wait. Not.
Never trust a DEM to keep their word on taxes and spending. Lying is in their DNA…..watch as they push through another GET increase and ignore taxpayers wishes to limit spending. You want it to top? Vote differently.
A`ole. The reason state law authorizes a surcharge on the GET for “public transportation purposes” exclusively, is because state statute expressly disclaims public transportation as a “matter of statewide interest” and provides that each county, including Honolulu (the seat of state government) is responsible for funding public transportation. The state of Hawaii is one of only 4 four US states that contribute zero dollars to public transportation, leaving it to the localities. What Hawaii county needs is a taxable property base sufficient to cover operations. As long as the state of Hawaii, Uncle Sam, and the charitable/educational Trusts continue to hold (from the looks of the map) 90% plus of Hawaii island land, without incurring a property tax liability, or having to make a payment in lieu of taxes, property tax payers will continue to bear the burden of these non- taxpaying land holders, in terms both of paying for the costs of county services provided to them “free”, and for the removal of these land from the possibility of TMK fee simple ownership.
Sadly I don’t think anyone is surprised by the Kim administration trying to redirect funds designated for something we can use like new roads and transportation infrastructure to something we can’t like funding overtime and retirement programs.
Saw this coming. Harry Kim’s administration is all about making and breaking promises. Now he wants to take another one of his tax hikes and send it all to Puna. There are needs elsewhere too!
As for the GET more tax increase, focus on repairing Hawaii’s aging and failing road system, essential to not only public transportation, but the economy, and transportation of Hawai’i Island’s residents and businesses. With more and more tax dollars going down and into the black hole of the “no new taxes’ candidate, now Mayor Kim’s and his administration are asking for …” clarity on whether it can pass another one-quarter percent increase by a March deadline”…
What’s needed is not more of the same, a greater public tax burden and higher cost of living, but greater public accountability – beginning with complete transparency of the department of public works’ Highway Maintenance Division expenses and road repair priorities — responsible for the repair, construction, maintenance, and improvement of all County roads and bridges.