LEGISLATURE 2006
Senator says state should collect tax
Four mayors seek funding from state lawmakers
A key state senator said yesterday that it makes better sense for the state -- not the city -- to collect the 0.5 percent mass transit tax.
But that may create problems because Gov. Linda Lingle wants the city to collect the newly approved tax.
"Why would you want the city to issue their own tax documents and have to collect it and have to set up its own collection system when all you need to do on Oahu is to have the state adjust that ... to a half percent more," Senate Ways and Means Chairman Brian Taniguchi said.
Taniguchi's comments came after Mayor Mufi Hannemann and the three neighbor island mayors made their annual trek yesterday to the state Capitol to ask state lawmakers for funding and other legislative requests.
Gov. Linda Lingle nearly vetoed the bill last year that gave counties the authority to impose a 0.5 percent general excise tax surcharge to finance rail or other transit projects. She objected to the state being given the tax collection duties for the new tax.
The state would also receive 10 percent of what's collected for administration costs.
Instead of vetoing the measure, Lingle allowed the bill to become law without her signature because of a promise she said she received from legislative leaders that they would transfer the tax collection responsibility to the city.
"I didn't promise anything," Taniguchi said. "I think there are people who said they'd take a look at it. And I think we're going to have to see what the county and the governor come up with."
House Speaker Calvin Say said he personally believes that the state should collect the tax and give the city its percentage but he will also wait to see the governor's and mayor's plan.
During the city's presentation yesterday, Hannemann told the House Finance and Senate Ways and Means committees that the city would accept the tax collecting authority but does not have the infrastructure in place to collect the tax.
That's why the city and the state Taxation Department want to contract with a third party to collect the entire 4.5 percent. It's a plan that already has drawn criticism from public employee unions, which would oppose any privatization of tax collections.
After yesterday's hearing, Hannemann said he would defer to the Legislature. In the past, Hannemann has said the state should collect the tax but was prepared for the city to take over those duties.
"We go wherever they go because we can't unilaterally implement the tax," Hannemann said. "We are just following what we said we would do with the governor -- we made that agreement -- and recognizing that the Legislature would ultimately have to agree with her."
Hannemann also told lawmakers that the city also plans to look at other means of financing a mass transit system.
"We would look for creative ways to partner with those who have helped other municipalities and are in a position to help us," Hannemann said.
COUNTY WISH LISTS FOR FUNDING
The four counties are turning to the state Legislature for help this year. Here is a list of their requests:
HONOLULU
» 311 Call Center to handle nonemergency calls
» Tax credits for Hawaii-based film productions
» Clear up technical flaw in the law so the city can get $4 million in road repair money that was promised last year.
HAWAII COUNTY
» $9 million for multi-purpose Senior Center/Aging & Disability Resource Center.
» $6 million in roads, water and sewer systems for affordable housing project in Kona.
» $2 million for coqui frog eradication
MAUI COUNTY
» $10 million for water acquisition from Waihee, Waiehu and Iao Streams.
» A high school in Kihei, an elementary school in Napili, intermediate schools in Central Maui and a four-year university on Maui.
KAUAI COUNTY
» Support state Department of Transportation projects including addition of a southbound lane and other improvements along Kuhio Highway and traffic improvements to Kaumualii Highway.
» $400,000 for matching funds for Pouli Road land acquisition and improvements.
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