House moves on
rental car surcharge

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By Bruce Dunford
Associated Press

The state House gave preliminary approval yesterday to a county rental car surcharge bill, but not without objections from most of the Republican members.

The measure letting the counties impose a daily surcharge of up to $5 on top of the state's $3 surcharge goes next to the Commerce and Consumer Protection Committee and Finance Committee for further consideration.

It was requested by Maui County Mayor James Apana, who wants the option to raise funds for improvements to the state's Honoapiilani Highway, which has been plagued by closures and bad traffic accidents. The highway links Wailuku and Kahului with Lahaina and the West Maui resort areas.

Several Republicans stood to protest the bill as a tax that will hurt local residents as well as the tourist industry.

"I don't understand why we persist in taking moves that basically are aimed at our visitor industry," said Minority Leader Galen Fox.

"This is not the way to further the good of the counties to enable them to pass on taxes that will drive tourists away from Hawaii and affect the state of Hawaii's revenue base," said Fox (R, Waikiki).

Rep. Barbara Marumoto (R, Waialae) said "the rent-a-car industry has not been very healthy since Sept. 11. I think this is a real imposition on them and the people who rent cars."

In support of the bill, Transportation Committee Chairman Joe Souki said each County Council would have to review the proposed ordinance, have public hearings and determine the dollar amount.

He targeted the GOP's long-standing support for more home rule for the counties.

"For those of you who have been speaking about home rule, this is a home rule issue. You are giving the four counties the opportunity to evaluate their needs and determine if they would need a surcharge. It's an option they have. It's not automatic," said Souki (D, Wailuku).

Earlier this week, Apana told lawmakers that occasional closures of Honoapiilani Highway due to traffic accidents or flooding threaten to discourage visitors from staying at the Kaanapali and Kapalua resort areas for fear they could miss their flights home.

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