LIHUE — It was a mixed bag at the Kauai County public hearing Wednesday for the proposed one-half percent general excise tax surcharge increase. The Kauai Chamber came out in support of the increase to the GET of .5 percent.
LIHUE — It was a mixed bag at the Kauai County public hearing Wednesday for the proposed one-half percent general excise tax surcharge increase.
The Kauai Chamber came out in support of the increase to the GET of .5 percent.
“This is the best way to secure the necessary funds to ensure an appropriate investment into Kauai’s transportation infrastructure, which is critical for commerce on the island,” said Mark Perriello, president of the Kauai Chamber of Commerce in his testimony.
He said many depend on roads that are modern and well maintained, and unless roads are kept up to date, many businesses will suffer.
“When businesses suffer that impacts the real working men and women of Kauai,” Perriello said.
Perriello was one of about 10 Kauai residents who testified at Wednesday night’s meeting. Seven opposed Bill 2610. Many cited concerns about the county’s money management record.
“I oppose this because the people that will administer this have shown failure after failure after failure in money management in this island,” said Rob Abreu.
Abreu said roads and bridges have been budgeted to be fixed for years, but action has yet to be taken on those projects.
“Show some accountability,” Abreu said, “and then maybe we can look to see where the money needs to be spent correctly and properly. Until then, I don’t think this should pass.”
Lonnie Sykos said he is opposed to the tax hike because it’s a regressive tax that’s “going to impact poor people more than the middle class, and it’s not going to impact the wealthy people whatsoever.”
“I’m also opposed to this on the grounds that the government is not supposed to tax us and take our money until you have a plan of exactly how and when you’re going to spend it on what,” Sykos said.
“If what you’re asking us to do is approve taxing ourselves so that we can provide a kitty of money that some future administration will decide when and how and what to spend it on, you’re asking us to give the future administrations a blank check for a lot of money,” he added.
Felicia Cowden, however, said she has “more confidence than some of the people in the room do that the county can get some of this right.”
She said she “reluctantly” supports the tax surcharge because it will help with infrastructure improvements.
“The amount I’ll be spending, I’ve already spent in car repairs because of the condition of the roads in my community,” Cowden said.
Roy Morita said he is reluctant to support the surcharge as well, but the tax surcharge will help with transportation infrastructure — and visitors would be contributing as well.
“Visitors use our public highways and bridges, as well as our parks, should share some of the burden to complete repairs and improvements,” Morita said.
In 2015, 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 county has been debating the issue and Wednesday, Bill 2610 was up for public scrutiny. Under the county’s plan, the tax increase is projected to generate over $20 million per year for the next 10 years for transportation and infrastructure improvements.
The next step in the process is that Bill 2610 will be hashed out again in committee meetings on Wednesday.
