Category Archives: Use (HRS 238)

HB 2028, HD-1

SUBJECT:  GENERAL EXCISE, INCOME, USE, Exemptions/Credits for Clean Energy

BILL NUMBER:  HB 2028, HD-1

INTRODUCED BY:  House Committees on Water & Land and Energy & Environmental Protection

EXECUTIVE SUMMARY:  Exempts personal income tax income and general excise tax income in an amount up to an unspecified percentage of the costs of construction and operation of projects entered into under a public-private partnership with the ERS to improve water infrastructure or water supply, or to promote clean energy. Authorizes ERS investments in such public-private partnerships.  This strategy dodges procurement laws and budgeting, increases risk to ERS assets, and may even be prohibited by ERISA.

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SB 2599, SD-1

SUBJECT:  GENERAL EXCISE, USE, Increase tax rate, disposition for department of education

BILL NUMBER:  SB 2599, SD-1

INTRODUCED BY:  Committee on Education

EXECUTIVE SUMMARY:  Increases the general excise and use taxes by 1% and provides that the revenue generated by the increased rate will be used for department of education operations, including salaries and maintenance costs.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous because of the all-encompassing nature of the tax.  We also question why such a massive increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.

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SB 2478, SD-1

SUBJECT: GENERAL EXCISE, USE, MISCELLANEOUS, Long term care surcharge on state tax

BILL NUMBER:  SB 2478, SD-1

INTRODUCED BY: Senate Committees on Commerce, Consumer Protection, and Health and Human Services

EXECUTIVE SUMMARY: This bill establishes a long-term care surcharge of 0.5% onto the state general excise and use tax which would be used as a dedicated source of funding to provide defined benefits for long-term care costs. The funding mechanism is a hike in an already regressive tax, and we can expect an experience similar to that we are having under the Honolulu county surcharge. The result is a defined benefit plan, presumably to cover all residents of the state who need long-term care; we can expect an experience similar to that we are having under ERS. Implementation of this idea could result in an unmitigated disaster.

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HB 2028, HD-1

SUBJECT:  GENERAL EXCISE, INCOME, USE, Exemptions/Credits for Clean Energy

BILL NUMBER:  HB 2028, HD-1

INTRODUCED BY:  House Committees on Water & Land and Energy & Environmental Protection

EXECUTIVE SUMMARY:  Exempts personal income tax income and general excise tax income in an amount up to an unspecified percentage of the costs of construction and operation of projects entered into under a public-private partnership with the ERS to improve water infrastructure or water supply, or to promote clean energy. Authorizes ERS investments in such public-private partnerships.  This strategy dodges procurement laws and budgeting, increases risk to ERS assets, and may even be prohibited by ERISA.

Continue reading HB 2028, HD-1

SB 2502; HB 2028 (Identical)

SUBJECT:  GENERAL EXCISE, INCOME, USE, Exemptions/Credits for Clean Energy

BILL NUMBER:  SB 2502; HB 2028 (Identical)

INTRODUCED BY:  SB by WAKAI, INOUYE, Slom; HB by YAMANE, CREAGAN, CULLEN, ITO, KAWAKAMI, KONG, C. LEE, NAKASHIMA, SAIKI, SAY, TSUJI, YAMASHITA, Souki, Tokioka

EXECUTIVE SUMMARY:  Exempts personal income tax income, general excise tax income, and use tax income in an amount up to an unspecified percentage of the costs of construction and operation of projects entered into under a public-private partnership with the ERS to improve water infrastructure or water supply, or to promote clean energy. Authorizes ERS investments in such public-private partnerships.  This strategy dodges procurement laws and budgeting, increases risk to ERS assets, and may even be prohibited by ERISA.

Continue reading SB 2502; HB 2028 (Identical)

SB 2547

SUBJECT: GENERAL EXCISE, USE, PUBLIC SERVICE COMPANY, INSURANCE PREMIUM, Periodic Review of Exemptions, Deductions, and Credits, Surcharge on Beneficiaries of Tax Benefits

BILL NUMBER:  SB 2547

INTRODUCED BY: TOKUDA, BAKER, DELA CRUZ, ENGLISH, GALUTERIA, INOUYE, KEITH-AGARAN, KIDANI, NISHIHARA, SHIMABUKURO

EXECUTIVE SUMMARY:  This bill would require the State Auditor to periodically review the myriad exemptions, deductions, and other tax benefits now provided under chapters 237, 238, and 239.  The cost of the review would be recovered by a surcharge on those who now take the exemptions.  This type of review, however, should already be within the purview of the Tax Review Commission that is provided for in our constitution and is supposed to be appointed this year (given that it wasn’t appointed last year when it was supposed to happen).  In addition, the surcharge would be unfair to the recipients of income that is exempt by design of the tax system.

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SB 2478, HB 1885 (Identical)

SUBJECT: GENERAL EXCISE, USE, MISCELLANEOUS, Long term care surcharge on state tax

BILL NUMBER:  SB 2478, HB 1885 (Identical)

INTRODUCED BY: SB by BAKER, CHUN OAKLAND, ESPERO, IHARA, NISHIHARA, Galuteria, Kidani; HB by TAKAYAMA, CHOY, CREAGAN, KAWAKAMI, OSHIRO, TOKIOKA, Cachola, DeCoite, Evans, Mizuno, Souki

EXECUTIVE SUMMARY: This bill establishes a long-term care surcharge of 0.5% onto the state general excise and use tax which would be used as a dedicated source of funding to provide defined benefits for long-term care costs. The funding mechanism is a hike in an already regressive tax, and we can expect an experience similar to that we are having under the Honolulu county surcharge. The result is a defined benefit plan, presumably to cover all residents of the state who need long-term care; we can expect an experience similar to that we are having under ERS. Implementation of this idea could result in an unmitigated disaster.

Continue reading SB 2478, HB 1885 (Identical)

SB 2599

SUBJECT:  GENERAL EXCISE, USE, Increase tax rate, disposition for department of education

BILL NUMBER:  SB 2599

INTRODUCED BY:  KIDANI, Baker, Galuteria

EXECUTIVE SUMMARY:  Increases the general excise tax by 1% and provides that the revenue generated by the increased rate will be used for department of education operations, including salaries and maintenance costs.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous because of the all-encompassing nature of the tax.  We also question why such a massive increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.

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SB 2586

SUBJECT:  GENERAL EXCISE, USE, Increase tax rate, disposition for department of education

BILL NUMBER:  SB 2586

INTRODUCED BY:  KIDANI

EXECUTIVE SUMMARY:  Increases the general excise tax by 1% and provides that the revenue generated by the increased rate will be used for department of education operations, including salaries and maintenance costs.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous because of the all-encompassing nature of the tax.  We also question why such a massive increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.

Continue reading SB 2586