Kokua Line
Kokua Line
Question: What's happening to all tax dollars now being received by the state on the sales of cigarettes? Carton prices have risen tremendously. Now there's a 5-cent tax for each pack of cigarettes. I see thousands of cigarettes being sold, especially at Costco and Sam's Club. Where does that tax money go? Tobacco taxes feed
state’s general fundAnswer: It all goes into the state's general fund. Since the state began requiring wholesalers and dealers to affix a tax stamp as proof that required taxes have been paid, collections have shown a significant increase.
But first, the tax is 5 cents per cigarette, not per pack. Second, this is not a new tax. What's new is that this year, the state began requiring the tax stamp on all packs.
On the sale of cigarettes alone, for fiscal year 2001 (beginning July 1, 2000) through April 2001 (the latest figures available), the state collected $42,843,898 in taxes, said Department of Taxation spokeswoman Linda Cacpal.
May and June collections still need to be calculated into the total for fiscal year 2001.
By comparison, the state took in $33,598,098 on cigarette taxes for the entire 2000 fiscal year (July 1, 1999-June 30, 2000), Cacpal said.
Total collections on all tobacco products (cigarettes, cigars, chewing tobacco, plus a small amount in penalties, interest payments and license fees) for the 2001 fiscal year through April: $45,766,759. That compares with $35,552,822 for the entire 2000 fiscal year.
Before the tax stamp requirement went into effect, the state said it had no idea how much revenue was lost because of untaxed cigarettes.
Q: I got my bill from the Star-Bulletin. One entry says tip is optional. I want to give a tip because my newspaper carrier has been extremely good delivering my paper to my porch. But how can I be sure he gets the tip? I called the subscription department and they said gratuities go to the distributor. Is there any way I can be sure the tip goes to the carrier? Otherwise, I'd much prefer to pay him myself.
A: Distributors are instructed to pass the tips along to their carriers, explained Mark Lewis, circulation director for Oahu Publications, the Star-Bulletin's parent company.
"I have not heard of any instances when this has not occurred," he said. However, he suggested if you are concerned, you can simply tip the carrier directly.
Lights out?
The city's street lighting section has moved to Manana, so there's a new number to call if you want to report a non-operating light: 564-6113. Someone will answer from 6:30 a.m. to 3 p.m., weekdays; after hours, you can leave a message.
Mahalo
Belatedly, to all the people who came to help after I blacked out while driving on the Pali Highway, Kailua-bound, just before Castle Junction on March 24. My car hit the wall and skidded sideways. People immediately came to my aid, reassuring me and staying with me until the ambulance arrived. It was a miracle that I got away with only three stitches. I thanked them all in my prayers but wanted to also let them know how much I appreciated their help. -- M. Sakamoto
Got a question or complaint?
Call 529-4773, fax 529-4750, or write to Kokua Line,
Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210,
Honolulu 96813. As many as possible will be answered.
Email to kokualine@starbulletin.com