Vehicle tax increased to pay for police raises

By Treena Shapiro
Advertiser Staff Writer

The Honolulu City Council yesterday raised the annual motor vehicle weight tax by 60 percent to pay for police raises, an increase that will cost owners of more than 545,000 vehicles $16 to $34 more a year.

However, council members said they had no other choice and voted 7-1 yesterday to approve the tax hike, but added to the bill an option to reconsider the increase if more revenue is available next year.

"It is a very hard thing for us to do, to increase the tax, especially on Christmas Eve, but because of the time constraint, because we do support our police officers and want to make sure there is a set funding source ... I reluctantly support it," said Council Budget Chairwoman Ann Kobayashi, who earlier had opposed increasing the weight tax.

The decision came as a relief to Tenari Ma'afala, president of the State of Hawai'i Organization of Police Officers. "We're happy. We're elated," he said after the meeting.

Ma'afala said the three Neighbor Island counties had been waiting to see what the council would do so they could move forward with honoring the statewide contract. All four counties had to agree to the contract and designate sources of money for the contract to go into effect. "We can all move forward," Ma'afala said.

Police Chief Lee Donohue was likewise happy with the decision, particularly since the 52 captains, majors and assistant chiefs who are not covered by the union contract will also receive raises.

"They rightfully deserve a raise also," Donohue said. Without it, "what's going to happen is the lowest paid lieutenant today will be making more than a captain in four years. There's not incentive to really step up to join the command ranks. It's certainly needed."

The council could not include in the bill the raises for excluded managers — which will include those in the fire and corporation counsel departments — but Mayor Jeremy Harris said he will honor the request to increase their wages as well. He explained the $365,000 additional cost for the fiscal year ending June 30 can be absorbed within the budget.

The number of excluded managers who will get raises was not available yesterday.

The higher taxes will go into effect Jan. 1, but because the council did not act at its Dec. 3 meeting, the January bills have already been mailed out reflecting the current tax rate. The higher weight tax fees will not be reflected in motor vehicle registration bills until February.

Under the measure approved yesterday, the tax for passenger vehicles will rise from 1.25 cents to 2 cents a pound, while commercial vehicles will see an increase from 2 cents to 2.5 cents a pound.

The tax increase will vary depending on the size of the vehicle. For instance, Toyota Corolla sedan owners will have to pay $18.97 more, Toyota Tacoma pickup truck owners will see a $26.62 jump and Toyota Highlander sport-utility vehicles will cost their owners another $27.30 a year.

Because the city will be unable to collect the higher taxes for January, it will raise only about $5.4 million or $5.5 million, instead of the $5.7 million needed to cover the raises. However, Harris said, "I think this is within range of being able to pay for all of the costs this year," as well as almost all of the costs next year.

Councilwoman Barbara Marshall was not at the meeting and only Councilman Charles Djou voted against raising the weight tax. He called it "a lump of coal in the stockings of all O'ahu taxpayers."

He listed off a string of other taxes and fees raised since the council took office in January: bus fares, real property taxes, building and permit fees and the cost to hook up to the city sewer system. He also noted that the city raised the rental fees for the Waikiki Shell and the Blaisdell Center and opened the door to charging fees for park use.

"If you would like to throw out all of this garbage passed by the city this year, that too will cost you more as the waste tipping fee was also increased," Djou said. "I do not believe the taxpayers are an endless cash machine."

But Councilman Mike Gabbard presented an argument against Djou's alternative proposal — cutting the city budget. Gabbard pointed out there was "fat" to trim from the city budget, popular programs and services such as Honolulu City Lights, the Royal Hawaiian Band, Brunch on the Beach, the department of Culture and Arts and city parks.

However, he added, "Yes, Mr. Chair, there is fat. But have you ever seen a person with no fat? It's not a pretty picture. "

Gabbard said it was unfair that vehicle owners have to pay the first installment of the raises when the police provide protection to everyone, but he said others will share in the burden for the other three years of the contract. "Whether it be property taxes, a sales tax, money from uncontested traffic fines, or cutting the 'fat' from our city budget, this bill will be paid — in one way or another — by all of us on O'ahu," he said.

The salary increases for Honolulu police officers in the union will depend on rank and years of experience. The base pay of an entry-level recruit with up to three years of service as of July 2002 was $33,408, while a lieutenant with 22-plus years in HPD earned more than $61,000.

Under contract details released by an arbitration panel in September, officers would receive a 4 percent raise in each of the four years of the contract, which along with health-fund payments and other benefits will cost about $66.4 million over the length of the contract.

Reach Treena Shapiro at tshapiro@honoluluadvertiser.com or 525-8070.