Hotel tax bill passes; Legislative leaders are hoping that Gov. Ben Cayetano will change his mind on a threatened veto of a hotel tax credit bill.
credit set at 10%
The governor has threatened
to veto a bill giving tax credits
for construction workBy Richard Borreca
rborreca@starbulletin.com
Late last night legislators threw down the gauntlet, by raising the hotel tax credit from 6 to 10 percent.
Cayetano said yesterday he would veto a bill to give four percent tax credits for residential property owners who renovate their property and 6 percent to hotel owners, because the bill gives too much to hotel owners.
"What the 6 percent credit for the hotel is, is the 4 percent excise tax and a 2 percent subsidy by the rest of us," Cayetano said last night.
"If they want to come and override my veto of it, fine," Cayetano said.
House Speaker Calvin Say (D, Palolo) said the Legislature tried to appease Cayetano by including the residential tax credit.
"Maybe after both chambers approve it, he will change his position. If he vetoes it, he isn't helping the local residents," Say said.
Members of the two money committees privately are saying, they are not sure the Legislature would have the required two-thirds votes to override a veto.
Senate President Robert Bunda (D, North Shore) said he hopes the Legislature would not have to go into another session to override a Cayetano veto.
The tax credit bill is designed to spur local construction, which will in turn help the local economy.
The two money committees held a nonstop 10-hour hearing yesterday to deal with 17 emergency economic recovery bills submitted by Cayetano.
Legislators were on the receiving end of a scolding by Linda Lingle, state Republican Party chairwoman and a candidate for governor next year.
She opposed a bill giving Cayetano sweeping emergency powers to suspend any statute, rule or order and adopt new rules to provide relief to residents of the state.
"This bill is so filled with the potential for widespread abuse, favoritism, corruption and a general disregard for the views of the public as to make it completely unacceptable in any form," Lingle said.
"Anyone who votes to pass the emergency powers bill is saying that they have lost confidence in democracy," Lingle said.
In the end, Cayetano won a tentative approval for the emergency powers bill, which will permit him to waive or lower fees, rents and leases charged by the state to airport concession holders.
State lawyers fear that because the state has a contract with the concessions, it cannot alter the contract without the emergency powers bill.
By amending the bills considered yesterday the legislators will have to extend the special session, which is now scheduled to end Monday.
Earlier yesterday, lawmakers heard nearly two hours of testimony from social service agencies hoping to extend the amount of money available for subsidies and grants to help laid-off workers.
One of the controversial items, however, was a bill calling for a $300 million University of Hawaii medical school and research complex.
University of Hawaii President Evan Dobelle characterized the new plan as a health and wellness complex that would include a new medical school, a new cancer research center and a new biotech and biomedical center.
To do that Dobelle is suggesting that the state tap a portion of the tobacco settlement to pay for the loans for revenue bonds for half of the $300 million.
The Coalition for a Tobacco Free Hawaii, Hawaii Nurses' Association, American Cancer Society, Hawaii Medical Association and Hui Olelo Hawaii, Laryngectomee Support Group all testified against transferring money from the tobacco settlement.
Dobelle, however, warned that funding the medical center is an emergency and a decision has to be reached soon.
Legislature Directory
Legislature Bills & Hawaii Revised Statutes
