Auto weight-tax proposal advances
| • | Chart: Motor vehicle weight tax |
By Treena Shapiro
Advertiser Staff Writer
A plan to raise motor vehicle weight taxes to pay for police raises cleared another hurdle yesterday after a sparsely attended public hearing before the City Council.
The tax increase would mean Honolulu's owners of 545,323 passenger vehicles would have to pay an extra $16 to $34 dollars for their annual motor vehicle registration.
The increase is necessary to pay for the police officers' arbitrated contract — which will cost $5.8 million this year and $66.4 million over the four-year contract. The Council unanimously approved the contract yesterday, which has to be approved by all four counties across the state to go into effect.
Only Honolulu, with 1,905 of the state's 2,600 officers, did not anticipate the raises in the current budget.
The police contract details released at the end of September would give the state's officers a 4 percent increase in each of the four years of the contract, which along with health fund payments and other benefits, will cost the city about $66.4 million over the length of the contract: an additional $5.8 million this fiscal year, $12.7 million the second year, $20.7 million the third year and $27.2 million the fourth year.
The administration has proposed paying for the contract for the next two years by raising the motor vehicle weight tax for passenger vehicles from 1.25 cents to 2 cents a pound on Jan. 1.
Only Councilman Charles Djou voted against the proposal, noting his long-standing opposition to tax increases of any kind.
Budget Chairwoman Ann Kobayashi expressed regret about having limited options because the raises were not included in the current budget.
"I wish we didn't have to do this," she said. "With proper budgeting by the administration we won't be handed this kind of no-choice legislation."
The administration has previously said it did not budget for the raises because the city's position during the contract talks was that there was no money for salary increases.
Councilwoman Barbara Marshall called for alternative ways to pay for the raises, but had to vote in favor of the tax increase. "I will be supporting passage because I don't see an alternative," she said.
Gareth Sakakida of the Hawaii Transportation Association, one of only two people who testified yesterday, said the group supported the police officers' raises, but opposed the use of the weight tax to pay for them. He said it was an unfair burden for the city's ground transportation industry.
"We are well over-taxed," he said, pointing out that they also have to pay federal, state and county fuel and weight taxes. "All these taxes are specifically for the ground transportation industry and they are above and beyond the taxes and fees paid by any other business."
Reach Treena Shapiro at tshapiro@honoluluadvertiser.com or 525-8070.
| Motor vehicle weight tax
The City Council is considering increasing the motor vehicle weight tax to help pay for police raises and benefits in their four-year contract. For O'ahu's 545,323 passenger vehicles, the rate would increase from 1.25 cents to 2 cents per pound. Some examples of how much more car owners would have to pay: |
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Other taxes and fees include a state registration fee of $20, a county highway beautification fee of $5, a county registration fee of $20 and a flat 50-cent county emblem fee. Owners must also pay a variable state weight tax. Source: City & County of Honolulu |
