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The Honolulu Advertiser

Posted at 1:15 p.m., Wednesday, August 10, 2005

Council approves tax hike for transit

By Robbie Dingeman
Advertiser Staff Writer

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The Honolulu City Council this afternoon approved increasing the general excise tax from 4 percent to 4.5 percent on O'ahu to pay for a transit system that has been debated for decades.

Final approval came in a 7-to-2 vote to move ahead with what critics called the biggest tax increase in the state's history. Supporters say it is the only alternative to growing gridlock.

More than 80 people signed up to testify in a heated debate that filled the Kapolei Hale meeting room. Signs represented the differing opinions: "I will ride," and "4.5% = Taxpayer (depicted with a screw through his back)."

Voting in favor were council chairman Donovan Dela Cruz; council transportation chairman Todd Apo, who represents the Kapolei area and most of the Leeward Coast pushing hard for relief from traffic congestion; and council members Ann Kobayashi, Gary Okino, Nestor Garcia, Romy Cachola and Rod Tam. Voting against were Charles Djou and Barbara Marshall.

Before the vote, Mayor Mufi Hannemann said he will move quickly to sign the bill into law and award a $10 million contract to an engineering firm to begin the next step in the process: an alternatives analysis and draft environmental impact statement.

The financial impact of the tax has been estimated at between $245 and $450 per household on O'ahu over the 15 years of the tax.