Posted on: Friday, April 29, 2005
State set to decide whether to boost tax to pay for rail
| • | Minimum wage bill awaiting final votes |
By Derrick DePledge and Gordon Y.K. Pang
Advertiser Capitol Bureau
State House and Senate negotiators likely will have to decide by today whether to increase the state's general excise tax to pay for transportation, a move Honolulu and federal officials believe is critical to the survival of a new rail project for O'ahu.
House negotiators again proposed yesterday that counties have the option of raising the excise tax by 1 percent — from 4 percent to 5 percent — to pay for mass transit.
The House would also provide $9.5 million over two years for the state Department of Taxation to help counties that choose a surcharge to collect the tax.
Honolulu would have until July 2006 to approve a tax surcharge for rail or the authority would expire.
Senate negotiators said they would review the House proposal, but did not back away from a suggestion Wednesday of a statewide increase in the tax that would give counties money for transit and also help cover the costs of raising the standard income tax deduction.
State House Rep. Joe Souki, D-8th (Wailuku, Waiehu), the chairman of the House Transportation Committee and the leading House negotiator, does not favor adding tax relief to the package.
State Sen. Brian Taniguchi, D-10th (McCully, Manoa), the chairman of the Senate Ways and Means Committee, said revenue from the excise tax may be the only way to fund tax relief this session. But he acknowledged that time is running out as today's deadline for finance bills approaches.
The Senate's original position was to allow counties to add a 0.5 percent surcharge. "I wish we had a few more days," Taniguchi said.
Gov. Linda Lingle repeated yesterday that she would only support giving counties, not the state, the option of raising the tax. "There's no version that would increase the excise tax, where more money would come to the state, that I could support," the governor told reporters.
'Ice' bill passes
Also yesterday, lawmakers reached agreement in conference committee on bills to place new restrictions on the sale of pseudoephedrine that might be used to make crystal methamphetamine, or "ice."
Lawmakers dropped a proposal that would have made people who buy the products register. But they created a limit of three packages or 9 grams for any single purchase. The bill would also require stores to keep the products behind the counter, in plain view of clerks, or within the scope of security cameras.
Pseudoephedrine, which is typically found in cold medicines, can be used as an ingredient when making ice. Lt. Gov. James "Duke" Aiona and law enforcement officials had urged lawmakers to limit access to the products.
Voting paper trail
Lawmakers also advanced a bill that would require all electronic voting machines used by the state Office of Elections to produce a paper ballot that could be examined and corrected by a voter before a ballot is cast. Voters were first given the option of the new machines during last fall's primary and general elections. But questions were raised almost immediately by voters who believed the machines had the potential for error or abuse because they lacked a voter-verified paper audit trail.
About 5 percent of Hawai'i voters used electronic machines during the November general election.
Reach Derrick DePledge at ddepledge@honoluluadvertiser.com or 525-8070.
