Governor Vetoes Measures that Will Stall Economic Recovery
As residents and businesses across the state are facing challenges as the result of today's economic climate, Governor Lingle vetoed three bills that would raise taxes on residents, visitors and businesses, cause further job losses, and delay our economic recovery.
Governor Lingle vetoes legislation that would hurt Hawai`i residents and businesses during a public veto ceremony in the Hawai`i State Capitol Rotunda.
The Governor was joined by hundreds of individual taxpayers, businesses and visitor industry leaders and employees during the public veto ceremony in the State Capitol Rotunda.
"This is about all the people of Hawai`i - not about protecting one particular group or favoring one group - it's about doing what's best for us," Governor Lingle said during the ceremony. "It's not just what's best for today - but what's best for us over the long term."
On Friday, despite the public's vocal opposition to tax increases, legislators overrode the Governor's vetoes on the final day of session. Combined, the bills will extract a total of $88.4 million in 2010 and almost $120.3 million each year thereafter out of the economy.
"The public has stood with me throughout this legislative session in every initiative that we've had, including my vetoes of the tax increases," the Governor said. "I want to thank everyone in the public for staying with me, and I want them to know I'll continue to stand with them."
Aqua Hotels and Resorts Chairman Michael Paulin, who brought 100 employees with him to the rally, expressed his concern about the damaging effects an increase in the Transient Accommodation Tax (TAT) would have on Hawai`i's visitor industry.
One hundred employees from Aqua Hotels and Resorts expressed their opposition to an increase in the TAT tax.
"Fewer people will come here, and more people will go to our competitors. It makes absolutely no sense," he said.
The bills vetoed by Governor Lingle are:
SB1111 SD1 HD1 CD1 – Increases the transient accommodation tax by 28 percent over the next two years, adding to the cost visitors and residents pay when staying at hotels, time-shares, and bed & breakfast lodgings. The tax increase would raise the cost of visiting Hawai‘i and discourage both leisure and business travelers from coming to the islands and further destabilize Hawai‘i’s already weakened visitor industry. Read the Governor's statement of objection.
HB1741 HD1 SD1 CD1 – Increases by up to 257 percent the conveyance tax home buyers, businesses, real estate developers, charities, non-profit organizations and other purchasers of all residential, commercial, industrial and agricultural real estate must pay for transactions over $2 million. It would also adversely impact affordable housing projects and non-profit organizations, including churches, schools, and youth organizations. Read the Governor's statement of objection.
HB1747 HD1 SD1 CD1 – Increases the personal income tax rate on almost 37,000 Hawai‘i income tax filers, sole proprietors and small businesses (S-corporations and partnerships) that file their business income as personal income. There are over 27,000 S-corporations, partnerships and sole proprietorship in Hawai‘i, which includes approximately 6,000 sole proprietors. Read the Governor's statement of objection.
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Watch this public veto ceremony.
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The Governor’s statements of objections on these vetoed bills are attached and can also be found on the Governor’s website at: www.hawaii.gov/gov/initiatives/veto.
On Wednesday, Governor Lingle addressed the people of Hawai‘i via the internet to outline ways in which actions taken and not taken by the Legislature this session will adversely impact the state's economic recovery and job creation. In less than one day, the address was viewed more than 276,000 times.
