Council delays
vote on transit tax

The City Council postponed yesterday to July 6 a vote on increasing the general excise tax by a half-percentage point to 4.5 percent to support a rail transit system.

Mayor Mufi Hannemann said he supports the decision to delay voting on Bill 40 because of the many changes that have been proposed by Council members.

"It's obvious to me that there are many concerns that are being raised. My administration wants to work with you and address your concerns. We're prepared to do that," Hannemann told the Council during a public hearing for the bill.

The mayor said he expects to have answers for the Council by the July vote.

Councilman Rod Tam offered the amendments to the bill last week, and Hannemann said there was not enough time to consider all the ramifications.

Tam said the postponement "gives us time to get more of the details from the mayor."

He blamed the administration for failing to provide detailed information on the rail system, including financial plans and a plan for the rail route.

Hannemann said postponing the vote does not send a negative signal to Gov. Linda Lingle, who said earlier that she will wait until July 12 to take action on the legislative bill that authorizes counties to increase the general excise tax to fund transportation projects. Hannemann also said the delay should not hinder efforts to seek federal funding.

"I still think that we're still on target in terms of moving something out," said Hannemann, who said the delay gives the city more time to make sure any bill that raises taxes is properly considered.

Councilman Romy Cachola said the decision should not be interpreted "as if the Council has cold feet or are in disarray."

Rather, it will allow other parties to give input, and allow the Council to look at alternatives, he said.

When asked why he proposed the postponement, Councilman Nestor Garcia said he needed time to "make sure what we're doing is where we want to go."

Most of those who testified at yesterday's hearing opposed the tax increase.

Many testified that the tax hike would hurt individuals and small businesses. Others wanted to see a transit plan before they would support a tax increase.

Karl Rhoads, an attorney who does not own a car, said rail transit systems work all over the world and would work in Honolulu.

"There is a cost to doing nothing, as is the cost of raising taxes," he said.

Councilman Charles Djou, who opposes the bill, encouraged the public to "use this brief reprieve to communicate to your elected officials that you do not want us to suck out $450 out of your wallet each and every year."