Hawaii Reporter
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Tax Hikes and Special Fund Raids on the Move at the Hawaii State Capitol
By Jay McWilliams, 3/3/2010 10:08:15 AM Hawaii lawmakers passed a number of bills yesterday that the Democratic majority party say will help reduce the state’s $1.2 billion deficit.Those bills will increase taxes, raid various special funds and suspend tax credits, all resulting in businesses and taxpayers having to pony up more to feed the insatiable appetite of state government. Some of the tax hikes and special fund raid measures that passed 3rd reading in the House and Senate yesterday include: HB1907, HD1, to temporarily suspend the income tax net operating loss carryback deduction for losses generated in 2009 and 2010, and places a cap on itemized deductions claimed on state income tax returns –http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=1907 HB2851 HD1, to temporarily increase taxes on insurance premiums – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2851 HB2872 HD1, to temporarily increase the tax rate on banks and other financial corporations – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2872 HB 2887 HD1, to transfer to the general fund moneys from the Hawaii Tobacco Settlement Special Fund designated for the Hawaii Tobacco Prevention and Control Trust Fund – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2887 HB2598 HD1, to take a limited amount of the counties’ share of the transient accommodations tax revenues distribution and give it to the state – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2598 HB2852 HD1, to raise additional state revenues by temporarily imposing from July 1, 2010 to June 30, 2015, the insurance premium tax on mutual benefit societies and health maintenance organizations – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2852 HB2866 HD1, to adjust income tax rates for taxable years beginning after Dec. 31, 2009, and ending before Jan. 1, 2016 – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2866 HB2867 HD1, to temporarily repeal various income tax deductions, exclusions, exemptions, and tax credits until Dec. 31, 2015 – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2867 HB2877 HD1, to temporarily suspend the General Excise Tax (GET) exemption for persons and instead require those persons to pay the GET at one-half percent rate – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2877 HB2962 HD1, to temporarily defer deductions against a taxpayer’s net income tax liability for claims under the Technology Infrastructure Renovation Tax Credit and High Technology Business Tax Credit until July 1, 2013 – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2962 HB1921, HD2, to capture taxes on certain conveyances of real property that currently escape the conveyance tax, specifically on real property transfers that occur within the transfer of interest in a legal entity that owns the real property – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=1921 HB1926 HD2, to impose a $20 fee for all business- and commerce-related professions, businesses or occupations that apply to the state Department of Commerce and Consumer Affairs for a license, permit or authorization, which would result in the raising of $5 million; the money raised would be used to fund the Department of Business, Economic Development and Tourism – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=1926 HB2850 HD1, to temporarily increase the liquor tax rates during the period from July 1, 2010 to June 30, 2015 – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=2850 SB2124 SD2, to raid the Hurricane Relief Fund of $86.1 million, to take care of public school furlough days this year and next – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=SB&billnumber=2124 SB2405 SD2, to adopt amendments to Hawaii tax laws to implement the streamlined sales and use tax agreement for Internet and catalogue sellers to “voluntarily” collect tax from the consumers and pass it on to the state Department of Taxation – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=SB&billnumber=2405 SB2052 SD2, to impose a consumer fireworks tax at the wholesale level – http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=SB&billnumber=2052 Legislative bills yesterday and today that pass 3rd reading in the House will crossover to the Senate tomorrow, March 4, 2010, and bills from the House will crossover to the Senate for the next round of committee hearings. The legislature will take up additional crossover measures on Thursday. Jay McWilliams is with Hawaii Reporter. Reach her at mailto:Jay@hawaiireporter.com/ |
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© 2010 Hawaii Reporter, Inc.
How many of you would like to bet that these new Taxes and Fees won’t be temporary if we let them get away with passing them! Just more out of control spending. When will it stop!
Here we go again. It’s time to contact our local representatives urging them not to increase taxes. And letting them know that the November elections are coming soon. Tax increases didn’t work with the current 2009/2011 budget and it’s certainly not going to work now in a depressed economy. Simple solutions are to cut spending and cut taxes. That has proven to stimulate an economy. Just look at history again and what President Harding did during the “Other Great Depression” during the 1920’s. It’s simple economics folks.