Vehicle weight tax hike
clears hurdle at Council
A proposal to hike the city vehicle weight tax to cover police pay raises burdens trucking and other transportation businesses, an industry spokesman told the City Council yesterday.
"The Hawaii Transportation Association supports the enhancement of our police officers yet opposes the use of the vehicle weight tax as a funding mechanism," testified HTA Managing Director Gareth Sakakida. "Everyone benefits from the work of our police force, yet the only business segment being taxed is the commercial ground transportation industry."
Yesterday, the Council moved Mayor Jeremy Harris' proposal to hike the passenger vehicle weight tax to 2 cents a pound, a 0.75 cent increase. The proposal also calls for the commercial vehicle weight tax to climb to 2.5 cents a pound from 2 cents.
An arbitrated award will cost $67 million over the life of the four-year police contract. The tax increase is expected to generate $6.5 million in revenue for the current fiscal year and $13 million for next fiscal year. The city needs to pay for $5.7 million in raises this year and $12.7 million next year.
Sakakida said the vehicle weight tax increase will be on top of other taxes the industry already pays.
"You hear people complain about the high cost of transportation," Sakakida said. "It really has to do with the truckloads and busloads of taxes and fees that we have to pay."
But the Council, by a vote of 8-1, sent the measure for its second Budget Committee hearing, with some members saying they have no other way to fund the pay raises.
"This is a very difficult thing that we have to do," Councilwoman Barbara Marshall said. "I don't see an alternative."
Councilman Charles Djou was the lone "no" vote. While he opposed raising taxes, he joined other members in voting unanimously to give final approval to a separate measure supporting the pay raises.
"The officers are more than deserving of this raise," said Kimo Smith, Oahu chapter chairman of the State of Hawaii Organization of Police Officers.
