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By Kevin Dayton
Advertiser Capitol Bureau Chief
As the legislative session enters its final weeks, lawmakers are still mulling proposals to boost alcohol and tobacco taxes, impose new fees on tourists, slap deposits on beverage containers and boost fees for marriage licenses and burial permits.
Here is the status of some of the tax and fee increases still under consideration at the Legislature: • Cigarette tax: House (HB 2741 HD2) wants to increase the tax from $1 to $1.20 per pack to raise an additional $8 million a year. Senate (HB 2741 HD2 SD2) wants to increase it to $2 to raise an additional $40 million a year. • Liquor tax: House opposes a tax increase. Senate (HB 2381 HD1 SD1) wants a 25 percent increase to raise an additional $10 million a year. • Long-term care tax: House (SB 2416 SD2 HD2) and Senate (HB2638 HD2 SD1) would not impose a tax at this time. Each wants to establish a panel to determine how the program would be financed. Advocates have proposed a tax of $10 per month. • Bottle bill: House (HB 1256 HD2) and Senate (HB 1256 HD2 SD2) want to require an unspecified deposit on all beverage containers, effective Oct. 1. Advocates have proposed a nickel deposit per container. • Air passenger fee: House (SB 2306 SD2 HD2) and Senate (SB 2306 SD2) want to authorize the Department of Transportation to impose a fee of $4.50 per passenger on all Mainland and international travelers. Interisland travelers would be exempt. Advocates say the money is needed to pay for additional airport security, but the bill does not require that the money be spent for such purpose.
Most of those proposals continued to advance in the House or Senate yesterday as lawmakers prepare to finalize each bill before the scheduled adjournment on May 2.
Higher taxes, fees undecided
Democrats in the Legislature believe they are cornered, forced into the uncomfortable position of proposing tax increases in an election year. And the Republicans, not surprisingly, seem intent on making the Democrats squirm.
With the exception of the bottle bill, the ruling Democrats contend the tax and fee increases may be needed to balance the state budget and prevent public worker layoffs and cuts to popular educational and social service programs.
The bottle bill is intended as an environmental protection measure that would discourage litter and encourage recycling.
"It's supply and demand," said House Majority Leader Marcus Oshiro, D-40th (Wahiawa Whitmore) said yesterday. "The demand for services far outweighs the supply of cash we have on hand, so we have to make adjustments on the supply side. That means making some hard choices on looking at revenue sources."
But in press conferences and in sometimes heated floor debates, the Republicans have underscored their point that more taxes will be an additional drag on an already ailing economy.
"Instead of helping the economy by reducing the burden of government on the rest of the economy ... we instead see in complete contrast with what the speaker said at the beginning of the session, a raising of taxes, a raising of fees, raiding funds," said Rep. Galen Fox, R-21st (Waikiki, Ala Wai).
Rep. Guy Ontai, R-39th (Wheeler, Mililani), said Democrats and officials in Gov. Ben Cayetano's administration are overstating the harm that would be done by budget cuts.
When public officials suggest that 100 teachers would lose their jobs following a 2 percent budget cut, Ontai said that is an effort "to scare taxpayers."
"That's not the first place the Republicans would cut, not the teacher end," Ontai said. "I'd like to make it clear that sure we'd like to trim the government, but we wouldn't trim it that way."
