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ThinkTech Hawaii: Hoarding School Impact Fees (Talking Tax)

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Kamehameha III Would be Upset. The hosts for this show are Mark Coleman and Tom Yamachika.

The DOE is unique in that it is the only state agency with the power to impose a tax. (Even the Department of Taxation only administers and enforces taxes imposed by laws enacted by the legislature.) The tax that DOE imposes is called the school impact fee. Five years ago, the State Auditor, in Report No. 19-13, found that ‘the school impact fee law has been of questionable ‘impact.’’ It allows DOE to collect money, but not that much.

The Auditor’s report said that zero school impact fee money had been spent. That may still be true, as the balances in the impact fee accounts have swelled to $18 million currently.

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