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Wednesday, September 6, 2017
Ige Signs $2.4B Rail Tax Hike Bill
By News Release @ 2:01 AM :: 6421 Views :: Honolulu County, Rail, Taxes

GOVERNOR SIGNS RAIL FUNDING BILL

News Release from Office of the Governor, Sep 5, 2017

HONOLULU – Gov. David Ige signed SB 4 after completing legal and policy reviews of the measure over the weekend.

The bill extends O‘ahu’s general excise tax surcharge to 2030, an additional three years. It also increases the state’s hotel room tax by one percent (10.25 percent) for the next 13 years.

“This is a strategic investment in Hawai‘i’s future. We must move this forward and complete this project,” said Gov. Ige. “I have heard the concerns of leaders and residents in Hawai‘i, Kaua‘i and Maui counties. I recognize the uniqueness of each county and the fiscal challenges they face, with main revenue sources being property taxes and the TAT. I understand why they would like to see more support from the visitor industry and I intend to work with the county mayors, county councils and the Legislature on a fair distribution of the TAT.”

Flickr: https://flic.kr/s/aHsm4myJr9

Link: bill signing

Link: Reporters Q&A

  *   *   *   *   * 

Mayor Caldwell statement on signing of rail funding bill by Gov. Ige

Honolulu - Mayor Kirk Caldwell issued the following statement regarding the signing today of SB4 into law by Gov. David Ige. 

“The signing of the rail funding bill into law shows Gov. Ige’s commitment and leadership in completing the rail project as promised to the people of O‘ahu, and is proof of the hard work done by members of the state Senate and House during the special legislative session.

Once fully built this driverless train will add fuel to the economic engine that helps power the entire state of Hawai‘i by promoting smart development, generating much-needed affordable housing and creating multi-modal communities that all of us are striving for.

The city is working closely with HART on an updated financial plan that takes this new funding mechanism into account, and we stand ready to answer any questions the Federal Transit Administration may have about completing the elevated rail line from East Kapolei to Ala Moana.

Gov. Ige’s signing of the rail funding bill also allows the Honolulu City Council to approve Bill 45, which extends O‘ahu’s half-percent surcharge to the state general excise tax another three years, and is a key component of the updated financial plan the FTA requires by September 15.

Meanwhile, my administration continues to work closely with our federal, state and city partners on implementing all of the mandates of the rail funding bill, in particular more state oversight of rail construction and the timely transfer of tax revenues to the city.”

-END- 

Bill 45: Text, Status

HNN: "There are no fatal flaws," said Gov. David Ige

CB:  FTA Financial Plan Expected

SA: Ige acknowledged that the measure’s increase of the statewide hotel-room tax by a percentage point irked many on the neighbor islands, but he said lawmakers would work toward a fairer apportionment of that tax across the counties.

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