LIHUE — The cost of your plate lunch could be on the rise, as well as many other daily purchases, if a proposed one-half percent increase to the general excise tax passes through the county’s chain of command. The issue
LIHUE — The cost of your plate lunch could be on the rise, as well as many other daily purchases, if a proposed one-half percent increase to the general excise tax passes through the county’s chain of command.
The issue arose this year after the state Legislature granted counties the right to establish a one-half percent surcharge on the GET. Counties have until July 1 to enact an ordinance that would increase the tax from Jan. 1, 2018 to Dec. 31, 2027.
The Kauai County Council is taking up the proposition again on Wednesday, and the question is whether to raise the current 4 percent tax on all Hawaii businesses’ gross incomes.
“Regarding the GET, it is a very important discussion that will need to be thoroughly vetted with our administration,” Kauai Councilman Mason Chock said. “If our community wants to fix our roads and consider traffic solutions, this is a good route to consider.”
That one-half percent increase on the tax translates to paying an extra $5.46 for every $1,000 you spend. That means the average person will be dropping an extra 56 cents every day just to get by, and that adds up to about $200 more every year.
Should the increase pass the council, an estimated $255 million would be generated for the County of Kauai over the next 10 years and all of it would go toward transportation.
The biggest chunk of that, $93 million, would be directed toward new transportation projects like a new entry road in Kilauea, or connectors in Kapaa, between Kuhio Highway, the Kapaa Temporary Bypass and Olohena Road.
Resurfacing and construction, as well as Kauai’s public transit system, both receive nearly $63 million.
The money would be able to be used on the county’s multimodal plan, which is aimed toward shifting the main mode of transportation from single-occupant cars to walking, cycling and public transit.
While everyone recognizes the issues with transportation and traffic on Kauai, not all councilmembers are in support of raising the GET.
“I’m absolutely opposed to increasing the GET surcharge,” said Councilman Gary Hooser. “Residents of Kauai pay too much in taxes and fees.”
Instead of raising the GET to manage traffic problems, Hooser said the county needs to better manage its spending.
He said the county needs to learn how to “do less with more,” in the same manner that island families have to live within their means in their own household budgets.
That could mean having to reprioritize road and bridge repairs and making some projects wait, Hooser said.
“The county needs to operate within its funds and at the end of the day, in the near term, we need to get a handle on the budget,” Hooser said. “Taxes have gone up every year for the past four years and it’s time to stop.”
The council meeting begins at 8:30 a.m. Wednesday in the Historic County Building.
